Encircle the followings: Which of the following is a definition of break-even point? a) The difference between the selling price of a product and the variable costs incurred in producing that product b) The fixed plus variable costs of the business c) The situation where neither a profit nor a loss is made d) The situation where a profit is made If the contribution per unit is $25 and the breakeven point is 80,000 units. Which of the following statements could NOT be true? (Show Calculation) a) The selling price per unit is $55 and the variable cost per unit is $30 b) The fixed costs are $2,000,000 c) To make a profit of $300,000, 92,000 units would have to be sold d) To make a profit of $500,000, 95,000 units would have to be sold Which of the following is not an underlying assumption of break-even analysis? a) Costs can easily be divided into fixed and variable. b) Fixed costs remain static over a relevant range. c) The unit selling price will remain constant throughout the relevant range. d) Raw materials unit costs may diminish with increased output.
Encircle the followings:
Which of the following is a definition of break-even point?
a) The difference between the selling price of a product and the variable
costs incurred in producing that product
b) The fixed plus variable costs of the business
c) The situation where neither a
d) The situation where a profit is made
If the contribution per unit is $25 and the breakeven point is 80,000 units.
Which of the following statements could NOT be true? (Show Calculation)
a) The selling price per unit is $55 and the variable cost per unit is $30
b) The fixed costs are $2,000,000
c) To make a profit of $300,000, 92,000 units would have to be sold
d) To make a profit of $500,000, 95,000 units would have to be sold
Which of the following is not an underlying assumption of break-even
analysis?
a) Costs can easily be divided into fixed and variable.
b) Fixed costs remain static over a relevant range.
c) The unit selling price will remain constant throughout the relevant range.
d) Raw materials unit costs may diminish with increased output.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
