the sales mix changes, the average contribution

margin ratio is likely tochange as well.

Select one:
The correct answer is 'True'.True  False

Question 10CorrectMark 1.00 out of 1.00

A company has just completed the final
development of its only product, general
recombinant bacteria, whichcan be programmed to
kill most insects before dying themselves. The
product has taken 3 years and$6,000,000 to develop.
The following costs are expected to be incurred on a
monthly basis for the normalproduction level of
1,000,000 pounds of the new product:
At a sales price of $5.90 per pound, the sales in
pounds necessary to ensure a $3,000,000 profit the
first year would be(to the nearest thousand pounds)Answer:
15,000,000
The correct answer is: 15,000,000

Assuming
that the unit sales are unchanged, the total contribution margin
will decrease
if:
a.
fixed expenses increase.
b.
fixed expenses decrease.
c.
variable expense per unit increases.

d.
variable expense per unit decreases.
The correct answer is:
variable expense per unit increases.
Question
12
Correct
Mark 1.00 out of 1.00
A company's breakeven point in sales dollars may be affected by
equal percentage increases in both sellingprice and variable cost
per unit (assume all other factors are constant within the relevant
range). The equalpercentage changes in selling price and
variable cost per unit will cause the breakeven point in sales
dollars to
a.
Decrease by more than the percentage increase in the selling price.
b.
Increase by the percentage change in variable cost per unit.
c.
Decrease by less than the percentage increase in selling price.
d.
Remain unchanged.

The correct answer is:
Remain unchanged.