4. If production increases by 40%, how will fixed costs per unit likely react within the relevant range? A. Increase by more than 45% B. Increase by less than 40% C. Decrease by less than 40% D. Remain the same 5. The term "relevant range" as used in management accounting means the range over which a. costs may fluctuate. b. cost relationships (patterns) are valid and true. c. production may vary. d. relevant costs are incurred. 6. Your client wants to determine the relationship between its annual Repairs \& Maintenance (R\&M) costs and a potential cost driver (number of machine hours worked). The output of a regression analysis showed the following information: Y-Intercept=126,078XVariable=122.12R-square=0.7852 Should your client use the equation (Y=$126,078+$122.12X) to predict next year's R&M costs? A. Yes, because R-square is so high. B. No, because R-square is so low. C. Noo, becausee regression analysis cannot be relied upon. D. There is not enough information to make this prediction. 7. On a PV graph, break-even is located at what point? a. Where the profit line crosses the Y-axis. b. Where the profit line crosses the X-axis. c. Where the profit line intersects the total sales line d. Where the profit line intersects the total cost line