Question 1 (1 point) Unit Variable Cost Unit Fixed Cost Increases Decreases a. Remains constant Remains constant b. Remains constant Decreases C. d. Remains constant Decreases An increase in the level of activity will have the following effects on unit costs for variable and fixed costs: b Question 2 (1 point) At the high level of activity in November, 7,000 machine hours were run and power costs were $16,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $8,000. Using the high-low method, the estimated fixed cost element of power costs is $16,000 $8,000 $4,800. $11,200 Question 3 (1 point) If a company had a contribution margin of $750,000 and a contribution margin ratio of 40%, total variable costs must have been $1,125,000. $450,000 $1,875,000. $300,000. Question 4 (1 point) At the break-even point of 2,000 units, variable costs are $110,000, and fixed costs are $64,000. How much is the selling price per unit? $87 $23 $32 Not enough information Question 5 (1 point) A company has total fixed costs of $200,000 and a contribution margin ratio of 20% The total sales necessary to break even are $800,000. $1,000,000. $250,000. $240,000