16. At the break-even point, total fixed costs equal total contribution margin. (True or False)

17. When performing cost-volume-profit analysis with multiple products, it is assumed that the sales mix remains constant, even when a different number of total units are expected to be sold.

(True or False)

18. Which of the following will have no effect on the break-even point in units?

A. The selling price increases.

B. The variable cost per unit increases.

C. The number of units sold declines.

D. Total fixed costs increase.

19. If a company increases production levels without increasing its units sold, both its full costing income and cash flows will be larger than if production were at a lower level. (True or False)

20. The following information relates to Charlin Industries for the year ending December 31, 2017, the companys first year of operations:

Units produced 100,000

Units sold 80,000

Units in ending inventory 20,000

Fixed manufacturing overhead $650,000

How much fixed manufacturing overhead would be expensed in 2017 using variable costing?

A. $520,000

B. $130,000

C. $650,000

D. $0