Question 1 Choose the item that is FALSE regarding mixed costs. They have both fixed and variable cost behaviors. Total cost may abruptly change at certain production volume intervals. Total cost may vary, but not in direct proportion to production volume changes. Total cost may vary in direct proportion to changes in production volume. D Question 2 Choose the item that most accurately and completely defines contribution margin. Gross profit (gross margin) Operating income Amount contributed toward fixed costs and profit Amount contributed toward variable costs and profit. Amount contributed toward manufacturing costs and profit 3 pts 3 pts