### 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's monthly overhead cost.

A. $33,000.

B. $35,000.

C. $37,500.

D. $40,000.