Question: 1. Which of the following statements is typically true?
(a) Variable cost per unit increases as volume increases,
(b) fixed cost per unit decreases as volume increases, or
(c) a curvilinear cost includes both fixed and variable elements.
2. Refer to Quick Check (8). If fixed costs for the period are $90,000, what is the break-even point in dollars?
Quick Check (8)
A company sells a product for $90 per unit with variable costs of $54 per unit. What is the contribution margin ratio?