1. Total fixed costs change as the level of activity changes. true or false? 2. Variable...
1. Total fixed costs change as the level of activity changes. true or false?
2. Variable costs are costs that remain constant on a per-unit basis as the level of activity changes. true or false?
3. Variable costs as a percentage of sales are equal to 100% minus the contribution margin ratio. true or false
4. The data required for determining the break-even point for a business are the total estimated fixed costs for a period stated as a percentage of sales.true or false
Homework Answers
Question - 1.
Answer : False.
>> Total Fixed cost is constant for change in level of activity.
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Question - 2.
Answer : True.
>> Variable cost per unit is constant for change in level of activity.
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Question - 3
Answer : True.
>> Variable cost = Sales - Contribution margin. So variable cost is 100 minus contribution margin percentage.
____________________________________________________________________________________________
Question -4.
Answer : False.
>> Break even point is a point of sales where profit is zero.
________________________________________________________________________________________________
Add Answer to:
1. Total fixed costs change as the level of activity changes.
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