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$24.$ Select the correct statement concerning the cost volume$-$profit graph below:

a$)$ The point identified by $\text{'}B\text{'}$ is the break$-$even point.

b$)$ Line $F$ is the break$-$even line.

c$)$ Line $F$ is the variable cost line.

d$)$ Line $E$ is the total cost line.

$25.$ If a firm is currently at the break$-$even point and it sells one more unit, what happens to its operating income?

a$)$ It will increase by the unit selling price.

b$)$ It will decrease by the unit variable cost.

c$)$ It will increase by the unit contribution margin.

d$)$ It will increase by the fixed cost divided by the unit contribution margin.

$26.$ Which of the following is an underlying assumption of CVP analysis?

a$)$ Factors other than changes in activity may affect costs.

b$)$ Cost classifications are reasonably accurate.

c$)$ Increases in inventories cause an increase in total fixed costs.

d$)$ Unit costs remain the same over the relevant range.

$27.$ Ed Green Corporation has two divisions: Outdoor Sports and Indoor Sports. The sales mix is $60\%$ for Outdoor Sports and $40\%$ for Indoor Sports. Green incurs $$2,420,000$ in fixed costs. The contribution margin ratio for the Outdoor Sports Division is $40\%,$ while for the Indoor Sports Division it is $50\%.$

The weighted$-$average contribution margin ratio is

a$)44\%.$

b$)45\%.$

c$)46\%.$

d$)50\%.$

$6$