Q63) Fixed costs divided by the contribution margin per unit equals the breakeven point in unit sales.

True

False

Q64)

The Black Corporation and the Blue Company both have a contribution margin ratio of 35%; therefore a $100,000 increase in sales will result in an equal increase in operating income for both companies.

True

False

Q66) If a companys beginning inventory is zero and everything is sold in the month it is produced, variable and absorption costing will always yield the same result.

True

False

Q67)

If a companys beginning and ending inventory count is the same and production cost per unit are the same; then, the ending inventory amount on the balance sheet must be the same dollar amount as the beginning inventory dollar amount.

True

False

Q68) If production exceeds units sold, which of the following statements is correct?

1-The same operating income will result under both a variable costing and absorption costing income statement.

2-A higher operating income will result under an absorption costing income statement.

3-A higher operating income will result under a variable costing income statement.

4- A lower operating income will result under an absorption costing income statement.