Question

1.As more units of a product are sold, the variable cost per unit typically

		Goes up
		Goes down
		Remains constant
		Becomes a fixed cost

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2.As more units of a product are sold, the total fixed cost typically

Goes up

Goes down

Remains constant

Becomes a variable cost

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3.Use the following information for Boxware Corporation to answer the next three questions.

Sales price per unit	$190
Variable cost per unit	$80
Average production	1,500 units per month
Total fixed costs	$55,000 per month

What is Boxware's contribution margin per unit?

$ 80

$110

$190

$270

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4.Use the following information for Boxware Corporation to answer the next three questions.

Sales price per unit	$190
Variable cost per unit	$80
Average production	1,500 units per month
Total fixed costs	$55,000 per month

How many units per month must Boxware sell to break even?

		500
		1,000
		1,500
		2,000

5.Use the following information for Boxware Corporation to answer the next three questions.

Sales price per unit	$190
Variable cost per unit	$80
Average production	1,500 units per month
Total fixed costs	$55,000 per month

What amount of sales in dollars must Boxware achieve each month in order to break even?

		$95,000
		$190,000
		$285,000
		$380,000 -------------------------