1. At the breakeven point, the contribution margin equals total a. Variable costs Selling and administrative costs b. Sales revenues d. Fixed costs 2. Queens Company produced 300 units in year one and sold 260 units in that year. In year two, it produced 260 units and sold 300 units. Total fixed overhead was the same in years one and two. Under variable costing, when will the cost of goods sold have to be computed using more than one step (the "longer way")? c. In year two only d. It is not required in either year a. In years one and two b. In year one only 3. Refer to the prior question. Under absorption costing, when will the cost of goods sold have computed using more than one step? c. In year two only d. It is not required in either year a. In years one and two b. In year one only 4. If y = total costs = 17x + 100, the variable cost per unit of activity is a. 100 b. 17x c. 17 d. 17x + 100 When variable.costing is used, all of the following are considered product costs except a. Direct labor c. Variable overhead b. Fixed overhead d. Direct materials