 2. A mixed cost contains both selling and administrative cost elements

# 2. A mixed cost contains both selling and administrative cost elements. True False 3. Variable costs are costs that remain the same per unit at every level of activity. True False 4. If a salesperson incurs \$2,000 of expenses in

Sale price \$15.00 Regular price \$30.00

2. A mixed cost contains both selling and administrative cost elements.
True False

3. Variable costs are costs that remain the same per unit at every level of activity.

True False

4. If a salesperson incurs \$2,000 of expenses in servicing two customers and \$4,000 of

expenses in servicing four customers, the fixed costs are \$1,000.

True False

5. If revenue = \$80 and variable cost = 40% of revenue, then contribution margin = \$48.

True False

6. The contribution margin is the amount of revenue remaining after deducting fixed costs.

True False

7. Sales mix is the percentage that each product represents of total sales.

True False

8. If the unit contribution margin is \$300 and fixed costs are \$240,000 then the break-even point in units would be 800 units.

True False