14. Within the relevant range, variable costs

1. are a different amount per unit at different activity levels.
2. are the same total amount at different activity levels.
3. are the same amount per unit at any activity level.
4. none of the above.

15. Which of the following is not an assumption underlying CVP analysis?

1. Costs can be accurately separated into their fixed and variable components.
2. Fixed costs remain fixed over the relevant range.
3. Variable costs per unit change over the relevant range.
4. The sales mix remains constant.

16. Jackson Co. has the following revenue and cost information:

Selling price per unit $15.00

Variable production cost per unit $6.00

Variable selling expenses per unit $1.00

Fixed production costs per period $280,000

Fixed selling costs per period $570,000

What is Jackson Co.s break-even point?

a. 31,111 units

b. 55,557 units

c. 71,250 units

d. 94,445 units

e. 106,250 units