TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) Adams Company sells a product whose contribution margin is $10 and selling price is $25. If the company's break-even point is 100 units, its total fixed costs must be $500. 2) When computing the break-even point in units, a company should round to the next whole unit because partial units ordinarily are not sold. 2) 3) 3) Jensen Company has a contribution margin ratio of 45%. This means that its variable costs are 55% of sales 4) An increase in total fixed costs increases the break-even point 5) 5) To be relevant in decision making, cost or revenue information must be future-oriented and must not differ between the alternatives 6) Mary must decide between two alternatives for the weekend: babysitting or yard work. If she babysits, she will receive $40 and will incur $15 in transportation costs. IIf she does yard work, she will receive $40 and will incur $3 in lawn mower gas and oil costs and $5 in transportation costs. The payment she would receive for the jobs is relevant in deciding which alternative to select 6) 7) Sunk costs are sometimes relevant for dec ision-making purposes 7 8) Differential revenues are expected future revenues that vary between the alternatives under consideration. 8) 9) A business segment should be eliminated if the revenue generated by the segment exceeds only its fixed costs 10) Costs that are not related to any specific product, batch, or unit of production are referred to as facility-level costs. 10) 91