### 47 variable costs would include a rent expense b depreciation expense c sales commis 4298358

47. Variable costs would include:
A. Rent expense.
B. Depreciation expense.
C. Sales commission expense.
D. Executive salaries expense.

48. Fixed costs:
A. Fall as sales volume falls.
B. Rise as sales volume rises.
C. Rise as sales volume falls.
D. Remain steady when sales volume changes.

49. If unit sales prices are \$7 and variable costs are \$5 per unit, how many units would have to be sold to break-even if fixed costs equal \$8,000?
A. 2,000.
B. 3,000.
C. 4,000.
D. 3,800.

50. If the unit sales price is \$7 and variable costs are \$3, how many units have to be sold to earn a profit of \$3,600 if fixed costs equal \$5,000?
A. 900.
B. 1,250.
C. 1,500.
D. 2,150.

51. If the unit sales price is \$12, variable costs are \$6 per unit and fixed costs are \$26,000 what is the contribution ratio per unit?
A. 40%.
B. 50%.
C. 60%.
D. 70%.

52. If the unit sales price is \$12, variable costs are \$6 per unit and fixed costs are \$36,000 what are the sales in dollars necessary to break-even?
A. \$90,000.
B. \$72,000.
C. \$70,000.
D. \$60,000.

53. If the unit sales price is \$14, variable costs are \$7 per unit and fixed costs are \$42,000, how many units must be sold to earn an income of \$250,000?
A. 52,142.
B. 41,715.
C. 34,762.
D. 29,796.

54. A product sells for \$125, variable costs are \$80, and fixed costs are \$45,000. If the selling price can be increased by 20% with a similar increase in variable costs, how many less units would have to be sold to earn \$300,000?
A. 5,595 units.
B. 7,667 units.
C. 1,278 units.
D. 6,389 units.

The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four-month period.

55. Using the high-low method, compute the variable element of manufacturing overhead cost per machine hour.
A. \$0.87 per machine hour.
B. \$1.50 per machine hour.
C. \$1.40 per machine hour.
D. \$2.10 per machine hour.

56. Using the high-low method, compute the fixed element of Olsen&#39;s monthly overhead cost.
A. \$33,000.
B. \$35,000.
C. \$37,500.
D. \$40,000.