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16. Within the relevant range,the difference between variable costs and fixed costs is: A. variable costs per unit fluctuate and fixed costs per unit remain constant. B. variable costs per unit are constant and fixed costs per unit fluctuate C. both total variable costs and total fixed costs are constant. D. both total variable costs and total fixed costs fluctuate. 17. The difference between total sales in dollars and total variable expenses is called: A. net operating income. B. net profit. C. the contribution margin. D. the gross margin. 18. Carver Company produces a product which sells for $30. Variable manufacturing costs are $12 per unit. Fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 10% of the selling price is paid on each unit sold. The contribution margin per unit is: A. $3 B. $15 C.$8 D. $12 E. $6 19. The break-even point is where A. total sales equals total variable costs. B. total contribution margin equals total fixed costs. C. total variable costs equal total fixed costs. D. total sales equals total fixed costs. 20. Which of the following represents the normal sequence in which the A. Sales, Production, Cash B. Direct Materials, Cash, Sales C. Production, Manufacturing Overhead, Sales D. Sales, Balance Sheet, Direct Labor indicated budgets are prepared? 21. The break-even point in unit sales increases when variable expenses: A. increase and the selling price remains unchanged. B. decrease and the selling price remains unchanged. C. decrease and the selling price increases. D. remain unchanged and the selling price increases 22. Net operating income reported under absorption costing will exceed net operating income reported under variable costing for a given period if. A. production exceeds sales for that period. B. production equals sales for that period. C. sales exceed production for that period. D. the variable manufacturing overhead exceeds the fixed manufacturing overhead

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