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-7 XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$150,000 + $10XDLH; R-square = 0.95); [Y= $190,000 + $5xMhr, R-square = 0.11); [Y=200,000+20; R-square=0.52). Based on this information, which cost driver do you recommend? tot Select one: a. Direct labor hours (DLH) b. None of them c. Quantity produced (Q) d. Machine hours (hr) e. All cost drivers are the same 3 All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases? of Select one: a. Unit contribution margin decreases while contribution margin ratio increases. b. Both unit contribution margin and contribution margin ratio decrease. c. Both unit contribution margin and contribution margin ratio are unchanged. d. Unit contribution margin increases and contribution margin ratio decreases. e. None of the given answers. 29 At the breakeven point ut of Select one: a. Sales will be equal to fixed costs plus zero target profit plus variable costs b. Sales will be equal to variable costs minus fixed costs c. Fixed costs will be equal contribution margin minus variable costs d. Fixed costs will be equal to variable costs e. Sales will be equal to variable costs plus target profit

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