Questions:
1. How is cost-volume-profit analysis useful?
2. What is a variable cost? Identify two variable costs.
3. When output volume increases, do variable costs per unit in crease, decrease, or stay the same within the relevant range of activity? Explain.
4. When output volume increases, do fixed costs per unit increase, decrease, or stay the same within the relevant range of activity? Explain.
5. How do step-wise costs and curvilinear costs differ?