Explain the differences between irrelevant costs and opportunity costs. (5 points)

Explain how break-even units of sale would change when per unit price increases by 5% and variable expenses per unit decrease by more than 5%.

What is the main difference between absorption costing and variable costing methods when we calculate per unit product cost?

The degree of operating leverage of company A is higher than company B. If sales decrease by 10% for each company, then which company would have higher net operating income and why?

Following table shows information of company A and Company B.

	Firm A	Firm B
Sales	Same	Same
Contribution Margin	Lower	Higher
Margin of Safety	Higher	Lower

. Which company should perform better if sales increase by 10% for both companies and why

Which company should perform better if sales decrease by 10% for both companies and why?