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# 6. Which of the following statements is true? (Points : 6)

### Resolved Question:

6. Which of the following statements is true? (Points : 6)
A per unit cost that is constant at all production levels is a variable cost per unit.
Reported income under variable costing is affected by production level changes.
A per unit cost that is constant at all production levels is a fixed cost per unit.
Reported income under absorption costing is not affected by production level changes.
A cost that is constant over all levels of production is a variable cost.

7. Which one of the following statements is not true? (Points : 6)
Total fixed costs remain the same regardless of volume.
Total variable costs change with volume.
Total variable costs decrease as the volume increases.
Fixed costs per unit increase as the volume decreases.
Variable costs per unit remain the same regardless of the volume.

10. A company has fixed costs of \$90,000. Its contribution margin ratio is 30% and the product sells for \$75 per unit. What is the company's break-even point in dollar sales? (Points : 6)
\$60,000
\$128,571
\$180,000
\$210,000
\$300,000

11. A company manufactures and sells a product for \$91 per unit. The company's fixed costs are \$859,716 and its variable costs are \$25 per unit. What is the company's break-even point in dollars? (Round all calculations to 2 decimal places.) (Points : 6)
\$627,592.68
\$1,177,693.15
\$622,982.60
\$1,091,839.30
\$66.00

12. Assume Moe's Southwest Grill has a break-even point of 24,000 units. At this point, total sales are \$1,800,000 and total variable costs are \$1,200,000. Compute total fixed costs at the break-even point. (Points : 6)
\$1,800,000
\$1,200,000
\$3,000,000
\$25
\$600,000
Submitted: 5 years ago.
Category: Finance
Expert:  JKCPA replied 5 years ago.
Hi,

Thanks for the questions.