1) Describe the relationship between the level of production and the variable cost per unit

2) Describe the importance of contribution margin. If you owned a business, how would an understanding of this concept benefit you?

3) Compare variable costs with fixed costs. Give two examples of each

4) What is the purpose of the High-Low Method?

5) What is the importance of break-even analysis? If you owned a business, how would an understanding of this concept benefit you?

6) What is the importance of the margin of safety ratio ? If you owned a business, how would an understanding of this concept benefit you?