1. Break-even in units will decrease when variable costs per unit

a. decrease and sales price decreases.

b. decrease and sales price remains unchanged.

c. remain unchanged and sales price decreases.

d. and sales prices both remain unchanged.

2. CVP analysis assumes that over the relevant range

a. total costs are unchanged.

b. unit variable costs are unchanged.

c. total fixed costs change.

d. none of the above are traditional CVP assumptions.

3. Relevant or differential cost analysis

a. takes all variable and fixed costs into account.

b. considers only variable costs that change across decision alternatives.

c. considers the change in reported net income within each alternative to arrive at the optimum decision for the company.

d. considers all variable and fixed costs that change across decision alternatives.