2. A just in time system can lower inventory holding costs and increase customer satisfaction. 3. Total variable cost increases in direct proportion to volume. 4. If a company had a pure fixed cost structure, every dollar of revenue after covering the fixed costs would be pure profit. 5. Contribution margin represents the amount available to cover fixed expenses and then provide company profits. 6. Qualitative information is not relevant for decision making. 7. The book value of equipment generally is one of the most important factors to consider in deciding to replace the equipment. 8. Only variable costs are relevant for decision making. 9. An increase in total fixed costs lowers the break-even point. 10. A company can use cost-volume-profit analysis to determine the level of sal required to earn a target profit