Question: If fixed expenses increase by $ 1 0 , 0 0 0 per year, then the sales needed to break even will generally increase by

If fixed expenses increase by $10,000 per year, then the sales needed to break even will
generally increase by more than $10,000.
o. true
o. false
A decrease in the number of units sold will decrease the break-even point.
o. true
o. false
The break-even point in units can be obtained by dividing total fixed expenses by the unit
contribution margin.
o. true
o. false
The break-even point can be determined by simply adding together all of the expenses from
the income statement.
o. true
o. false
An increase in the number of units sold will decrease a company's break-even point.
o. true
o. false
For a capital intensive, automated company the break-even point will tend to be higher and
the margin of safety will be lower than for a less capital intensive company with the same
sales.
true
o. false
The total volume in sales dollars that would be required to attain a given target profit is
determined by dividing the target profit by the contribution margin ratio.
o. true
o. false
Two companies with the same margin of safety in dollars will also have the same total
contribution margin.
o. true
o. false
 If fixed expenses increase by $10,000 per year, then the sales

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