1.An income statement prepared using the contribution margin approach can be used for both external reporting and internal use.

True False

2.There is a contradiction between the term fixed cost per unit and the behavior pattern implied by the term because a fixed cost per unit is not fixed.

True False

3.By calculating the break-even point, managers can determine how many units must be sold and how much revenue must be generated in order to avoid losing money.

True False

4.Total variable cost increases in direct proportion to volume.

True False

5.The variable cost per unit increases in direct proportion to volume.

True False