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