The scattergraph method is an approach which can be used to determine both the total fixed cost component and the variable cost per unit component of a mixed cost.
True or False
When performing basic CVP analysis, variable costs are assumed to be constant on a per unit basis within the relevant range.
True or false
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If manufacturing supply costs amount to $9,500 and $13,500 at manufacturing volumes of 90,000 units and 170,000 units, respectively at the low and high point of anticipated volume, then the manufacturing supply cost at a volume of 120,000 units would be expected to amount to (use the High-Low method):
| Contribution margin equals net sales revenues less |
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Cost of goods sold |
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Total product costs |
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Variable product costs |
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Total variable costs (product and period) |
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Total product and period costs |
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