As sales exceed the break-even point a high

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1. As sales exceed thebreak-even point, a high contribution-margin percentage

A. increases profits faster thandoes a low contribution-margin percentage

B. increases profits at the samerate as a low contribution-margin percentage

C. decreases profits at the samerate as a low contribution-margin percentage

D. increases profits slower thandoes a low contribution-margin percentage

2. An increase in totalvariable cost usually indicates ___________.

A. the cost-driver activity levelis decreasing

B. the cost-driver activity levelis increasing

C. variable cost per unit isdecreasing

D. variable cost per unit isincreasing

3. _____ are a qualitative factor of a make-or-buydecision.

A. Variable manufacturingcosts

B. Avoidable costs

C. Long-term relationships withsuppliers

D. Opportunity costs

4. ____ old equipment is relevant in a decision to replaceequipment.

A. Cost of

B. Book value of

C. Accumulated depreciation of

D. Future maintenance costs of

Reference no: EM13481656

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