# Fixed expenses that can be traced to the segment are called

1. Which of the following differentiates direct fixed expenses from common fixed expenses? The direct fixed expenses are those fixed costs that can be traced to a segment, whereas the common fixed expenses are not traceable to the segments. The direct fixed expenses are linear revenue and linear cost functions that remain constant, whereas the common fixed expenses are profits and sales unit functions that change over a relevant range. The direct fixed expenses are fixed costs that are the measures of profit, whereas the common fixed expenses are fixed costs that are the measures of revenue. The direct fixed expenses are fixed costs which remain even if one of the segments is eliminated, whereas the common fixed expenses are fixed costs that would be avoided if a segment is eliminated. 2. Which of the following statements is true of sales mix? It is the relative combination of inputs being purchased by a firm. It is the relative combination of products being sold by a firm. It is the relative combination of products being produced by a firm. It is the relative combination of inputs being used by a firm. 3. A company manufactures two products. Information about the two product lines for the current year is as follows:

 Product A Product B Selling price per unit \$90 \$120 Variable costs per unit \$50 \$60
The company expects fixed costs to be \$70,000. Calculate the break-even quantity of each product when the sales mix is 2:1. 1,145 units, 572 units 1,250 units, 625 units 1,110 units, 555 units 1,000 units, 500 units 4. The margin of safety in dollars is calculated by. subtracting total cost from the actual sales. subtracting the contribution margin from the actual sales. subtracting the break-even sales from the actual sales. subtracting the fixed cost from the actual sales. 5. Lauren Company plans to sell 3,000 units of a product at \$500 each. For the product, unit variable cost is \$380 and break-even units are 700. Calculate the margin of safety for Lauren in terms of the number of units. 2,000 units 2,100 units 2,200 units 2,300 units 6. Young Manufacturing Company plans to sell 600 units at \$500 each in the following year. The data on costs is as follows:
 Variable cost \$400 Total fixed cost \$47,000 Operating Income \$30,000
Calculate the degree of operating leverage. 3 2 4 1