21. Using cost-volume-profit analysis, we can conclude that a 20 percent reduction in variable costs will:

A)Not affect the break-even sales volume if there is an offsetting 20 percent increase in fixed costs

B)Reduce the break-even sales volume by 20 percent

C)Reduce total costs by 20 percent

D)Reduce the slope of the total costs line by 20 percent

22. The point where the total costs and the total revenues lines intersect provides information about the:

A)Budgeted income

B)Center point in the relevant range

C)Number of units that must be sold to break even

D)Profit maximizing sales volume

23. The break-even point is:

A)The volume of activity where all of the variable costs, but none of the fixed costs are recovered

B)Where total fixed costs equal total variable costs

C)Where total revenues equal total fixed costs

D)None of the above

24. In a cost-volume-profit graph:

A)The slope of the total cost line is dependent on the variable cost per unit

B)The slope of the total revenues line is the contribution margin per unit

C)The total costs line normally begins at zero

D)The total revenue line is plotted above the total cost line

25. The total contribution margin at the break-even point:

A)Equals total fixed costs

B)Is zero

C)Is greater than total variable costs

D)Plus total fixed costs equal total revenues