bubble in your answer in the space provided on the right side of the scantron. ALSO, cirele your hoice questions (3.2 points each). Select the BEST answer for each question and answer on this test paper. 2-4 "Unless the problem otherwise indicates, assume that sales and production have been equal for this and the prior period." 1. Which of the following assumption is used in cost-volume-profit analysis? A) All costs are classified as fixed or variable B) The total cost function is linear C) The total revenue function is linear D) All of the above 2. The portion of each dollar that can be used to cover fixed costs and provide a profit is known as: A) Contribution margin B) Gross margin percent C) Margin of safety D) Operating leverage 3. Nancy Company has sales of $100,000, variable costs of $5 per unit, fixed costs of $25,000, and a profit of $15,000. How many units were sold? A) 20,000 B) 16,000 C) 12,000 D) 8,000 4. At a level of 20,000 units sold. Gail Corp, has sales of $400,000, a variable cost ratio of 60% , and profit of $40,000. What is the break-even point in units? A) 12,000 B) 8,000 C) 20,000 D) 15,000 5. Product Y sells for $15 per unit, and has related variable expenses of $9 per unit. Fixed exp total $300,000 per year. How many units of Product Y must be sold each year to yield an ann of $90,000? A) 50,000 units B) 65,000 units C) 15,000 units D) 43,333 units