true or false

ACCT 1090 Chapter 6 True/False Name 1) Fixed costs per unit decrease as production levels decrease. 2) If the volume of activity doubles in the relevant range, total variable costs will also double. 3) Fixed cost per unit is assumed to be constant within a particular relevant range of activity. 4) If the selling price of Product X is $15.50 per unit and unit fixed cost is $5.50, its contribution margin per unit is $10.00 5) Contribution margin is the difference between net sales revenue and variable costs. 6) A contribution margin income statement classifies costs by function; that is, costs are classified as either product costs or period costs. 7) If all other factors remain constant, an increase in fixed costs will increase the breakeven point. 8) Fixed costs divided by the contribution margin ratio equals the breakeven point in sales dollars