15) If variable costs per unit decrease, sales volume at the break-even point will

a.	Increase	c.	Remain the same
b.	Decrease	d.	Remain the same; however, contribution margin per unit will decrease

16)

Given: Sales price per unit $140

Variable cost per unit $100

Fixed costs $50,000

Expected sales 5,000 units

The break-even point in units is

a.	2,500	c.	500
b.	1,250	d.	357

26)

You are given the following decision schedule for a product line decision (keep or drop) prepared by someone who did not study Accounting 306:

Schedule if Product QC is eliminated:

Relevant revenue (lost) $(12,448.75)

Relevant costs avoided:

Variable costs $7,500.00

Depreciation (scheduled to continue for 3 years) 6,400.00

Relevant income $ 1,451.25

You are asked to check this schedule and decide whether to keep or drop the product. The best decision to recommend is

a.	Drop the product because the schedule is correct	c.	Drop the product because the schedule is not correct
b.	Keep the product because the schedule is correct	d.	Keep the product because the schedule is not correct