Variable Costs Per Unit Over a Given Range Are

question 189

Multiple Choice

Variable costs per unit over a given range are:

• A) Inversely related to the quantity of units sold.
• B) Graphically represented by a linear function with a positive slope.
• C) Not subjected to sensitivity analysis as long as the quantity sold is held to a reasonable range.
• D) Equivalent to fixed costs per unit at a zero production level.
• E) Equivalent to marginal net income provided sales revenue is positive over the given range.

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Definitions:

Positively Correlated

A relationship between two variables where both either increase or decrease together.

Portfolio

A conglomerate of monetary investments incorporating shares, debentures, material goods, cash on hand, and assets akin to cash, inclusive of mutual funds and ETFs.

Mean

The average of a set of numbers, calculated by dividing the sum of all numbers by the count of numbers.

Investment

The allocation of resources, usually financial, in expectation of generating an income or profit.