Variable cost

1.Our company sells its product for $60 per unit and has a variable cost of $30 per unit. Total fixed costs equal $20,000. What would be the breakeven point in units if the fixed costs decreased by $2,000? a. 500b. 600c. 1,000d. 1,2002.Our company sells its product for $100 per unit and has a variable cost of $40 per unit. Total fixed costs equal $18,000. The breakeven in units is 300, and we expect to sell 350 units. What is the margin of safety in dollars?a.($5,000)b. 3,000c.($3,000)d.$5,0003.What are costs that do not change in total over a wide range of volume?a.variable costsb.fixed costsc.mixed costsd.relative costs4.Fixed costs per unit will:A.increase as volume increasesb. remain the same regardless of changes in volumec. decrease as volume increasesd.decrease as volume decreases5.Which of the following is a fixed cost?a.direct materialsb.wages of production workersc.salary of production managerd. sales commission

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