True/False (2 Points) 1. Total fixed costs change with changes in volume of activity. 2. Per unit fixed costs change with changes in activity. 3. Total mixed costs do not change in proportion to changes in activity. 4. An example of a mixed cost would include salespersons who are paid salaries plus commissions based on sales dollars. 5. Variable costs such as direct labor and direct materials typically stay constant on a per unit basis. 6. The high-low method is one of the most accurate methods for estimating costs, because its estimates are based on the data set as a whole. 7. Unusual data points are often called outliers. 8. The contribution margin is calculated by taking total sales revenue minus total fixed costs. 9. The traditional income statement does not separate costs into fixed and variable components. 10. The contribution margin income statement is used for internal reporting purposes and presents the fixed and variable components of cost information. Multiple Choice (4 Points) 11. The equation that best describes a mixed cost is: a Y=f-vX b. Y=f+xx c. Y=f+v+X d. Y=x+X c. None of the answer choices is correct