A

Use the breakeven chart below to answer questions 9 and 10

600

B

500

Sales/Cost

400

C

300

200

100

20 40 60 80 100 120

Volume of activity (units of output)

9. Using the chart above calculate the total variable costs at the break-even point

200

300

100

40 4 Marks

10. Calculate the variable cost per unit

(a) 0.13

(b) 1.25

(c) 2.50

(d) None of the above

4 Marks

11. Fixed costs are usually characterised by:

(a) Unit costs that remain constant.

(b) Total costs that increase as activity decreases.

(c) Total costs that increase as activity increases.

(d) Total costs that remain constant.