Question:
1. What is the primary weakness of the high-low method?
2. Using conventional CVP analysis, a mixed cost should be (a) disregarded, (b) treated as a fixed cost, or (c) separated into fixed and variable components.
3. Fixed cost divided by the contribution margin ratio yields the (a) break-even point in dollars, (b) contribution margin per unit, or (c) break-even point in units.
4. A company sells a product for $90 per unit with variable costs of $54 per unit. What is the contribution margin ratio?