Would each of the following increase, decrease, or have an indeterminant effect on a firm’sbreak-even point (unit sales)?a. The sales price increases with no change in unit costs.b. An increase in fixed costs is accompanied by a decrease in variable costs.c. A new firm decides to use MACRS depreciation for both book and tax purposes ratherthan the straight-line depreciation method.d. Variable labor costs decline; other things are held constant.

6. Once the break-even point is reached, which of the following statements is true? A) Variable expenses will remain constant in total. The contribution margin ratio begins to decrease. Operating income will increase by the unit contribution margin for each additional B) C) item sold. D) The total contribution margin changes from negative to positive. 7. The break-even in units sold will decrease if there is an increase in which of the following? A) Total fixed expenses. B) Selling price. C) Unit sales volume. D) Unit variable expenses. 8. Which of the following is normally included in product cost under the variable costing method? A) Prime cost and all conversion cost. B) Direct materials cost, direct labour cost, but not manufacturing overhead cost. Direct materials cost, direct labour cost, and variable manufacturing overhead cost. C) D) Prime cost but not conversion cost. 9. Regarding job-order costing and process costing: A) Job-order costing is better in the long run B) Are both…

A firm can reduce its breakeven volume by: decreasing fixed costs. B) decreasing contribution margin. Jy C increasing variable costs. lowering selling price.

Consider the following​ statements:      1. Businesses that are capital intensive tend to have high operating gearing.      2. Businesses with relatively high total variable cost compared with their total fixed​ cost, at their normal level of​ activity, are said to have high operating gearing. Are the above statements true or​ false?