1. Which of the following conditions would cause the break-evenpoint to increase?
a. Total fixed costs increase
b. Unit selling price increases
c. Unit variable cost decreases
d. Total fixed costs decrease
2. Periods in time that experience increasing price levels areknown as periods of:
a. inflation
b. recession
c. depression
d. deflation
3. The costs of services charged to a profit center on the basisof its use of those services are called:
a. operating expenses
b. noncontrollable charges
c. service department charges
d. activity charges
4. If fixed costs are $850,000 and variable costs are 75% ofsales, what is the break-even point (dollars)?
a. $1,133,333
b. $1,983,333
c. $3,400,000
d. $2,550,000
5. If the expected sales volume for the current period is 7,000units, the desired ending inventory is 200 units, and the beginninginventory is 300 units, the number of units set forth in theproduction budget, representing total production for the currentperiod, is:
a. 7,000
b. 6,900
c. 7,100
d. 7,200