The break-even point in unit sales increases when variable expenses

a. Increase and the selling price remains unchanged

b. Decrease and the selling price remains unchanged

c. Decrease and the selling price increases

d. Remain unchanged and the selling price increases

28. The difference between total sales in dollars and total variable expenses is called

a. The net operating income

b. The net profits

c. The gross margin

d. The contribution margin

56. Margin of Safety = Sales plus Breakeven Sales

True

False

47. One of the assumptions of CVP is that costs are non linear.

True

False