This question has five parents:

1. Variable costs in total increase or decrease in proportion with changes in the level of business activity:

a. true b. false

2. Variable cost per unit remains constant when the number of units produced changes:

a. true b. false

3. Fixed cost per unit remains the same even though there is a change in the number of units produced:

a. true b. false

4. Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for:

a. investors and banks

b. internal users of accounting information

c. shareholders and creditors

d. the Security and Exchange Commission (SEC)

5. Kilwins Candies produced and sold 600 boxes of chocolate covered popcorn last month and had total variable costs of $2,100 that reflected the cost of chocolate and popcorn (ingredients). Each box of popcorn for $12.00. If production and sales are expected to increase by 10% next month, which of the following statements are true?

a. Total variable costs are expected to be $1,785.

b. Variable cost per unit is expected to be $3.50.

c. Unit variable costs are expected to be $2.10.

d. Total fixed costs will be $150,000.