Variable costs Relevant range Contribution margin

Break-even point Fixed costs Semivariable costs

Economies of scale Sales mix Unit contribution margin

Each of the following statements may (or may not) describe
one of these technical terms. For each statement, indicate the accounting term described, or answer
“None” if the statement does not correctly describe any of the terms.

a. The level of sales at which revenue exactly equals costs
and expenses.

b. Costs that remain unchanged despite changes in sales
volume.

c. The span over which output is likely to vary and
assumptions about cost behavior generally

remain valid.

d. Sales revenue less variable costs and expenses.

e. Unit sales price minus variable cost per unit.

f. The reduction in unit cost achieved from a higher level
of output.

g. Costs that respond to changes in sales volume by less
than a proportionate amount.

h. Operating income less variable costs.