Total variable costs change inversely with changes in the volume of activity. True False If a cost is recorded as an asset (for example, prepaid rent for an office building), it becomes an expense when the asset has been consumed. True False Fixed costs per unit change inversely with changes in the volume of activity. True False Dartmount Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (2,900 units) Variable costs Contribution margin Fixed costs Operating profit $275,500 116,000 159,500 136,100 $ 23,400 If the company sells 3,200 units, its total contribution margin should be closest to: $25,821. $188,000. $159,500. $176,000. At a break-even point of 650 units, variable costs were $975 and fixed costs were $260. What will the 651st unit sold contribute to operating profits before income taxes? $0.40 $1.50 $1.90 $2.30 If the average selling price is $.60 per unit, the average variable cost is $.36 per unit, and the total fixed costs are $1,500, then sales of 15,000 units will result in operating profits of $3,600. True False