Question: TRUE/FALSE 11. Adding a desired target operating income level to breakeven computations will lower the number of sales units. 12. Cost-volume-profit analysis assumes a constant

TRUE/FALSE 11. Adding a desired target operating income level to breakeven computations will lower the number of sales units. 12. Cost-volume-profit analysis assumes a constant sales mix 13. Cost-volume-profit analysis assumes costs and revenues have a close linear approximation. 14. Cost-volume-profit analysis is not appropriate for service businesses. MULTIPLE CHOICE 20. You have calculated, using the high-low method, a variable cost per machine hour of $0.50 for your production power costs, Power costs at 5,000 machine hours are $3,800; at 8,000 machine hours, they are $5,300. What is the fixed cost that you would use to calculate production power costs for your company at any level within your relevant range? a. $3,100 b. $2,650 c. $1,300 d. $2,600

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