How do you calculate Break-even Point? Select one: a. Fixed cost/ Contribution per unit b. Contribution per unit/ Fixed cost O C. Fixed cost/ Sales price per unit d. Fixed cost/ Variable cost per unit

How do you calculate Break-even Point? Select one: a. Fixed cost/ Contribution per unit b. Contribution per unit/ Fixed cost O C. Fixed cost/ Sales price per unit d. Fixed cost/ Variable cost per unit

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1MC: The amount of a units sales price that helps to cover fixed expenses is its ____________________. A....

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Question

How do you calculate Break-even Point?
Select one:
O a. Fixed cost/ Contribution per unit
b. Contribution per unit/ Fixed cost
c. Fixed cost/ Sales price per unit
d. Fixed cost/ Variable cost per unit

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In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs C. total costs D. units of production
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simple cost analysis method to identify fixed costs and variable costs in a linear cost function is ........ method
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What are the formulas for: 1. Contribution Cost 2. Break even cost
The contribution-margin ratio is: Select one: a. unit contribution margin divided by the selling price b. the difference between the selling price and the variable cost per unit. c. unit contribution margin divided by fixed cost per unit. d. variable cost per unit divided by the selling price e. fixed cost per unit divided by variable cost per unit.
Answer the following: 1. The unit contribution margin is calculated as the difference between: a. selling price and fixed cost per unit. b. selling price and variable cost per unit. c. selling price and product cost per unit. d. fixed cost per unit and variable cost per unit. e. fixed cost per unit and product cost per unit 2. At the break-even point, the total contribution margin is: a. Zero b. Equal to total fixed costs c. Equal to total costs d. Equal to total variable costs 3. A company with a negative margin of safety also has a (an) a. Operating loss b. Operating profit c. Sales above its break-even point d. Sales equal to its break-even point 4. The break-even point is that level of activity where: a. total revenue equals total cost. b.variable cost equals fixed cost. c. total contribution margin equals the sum of variable cost plus fixed cost. d. sales revenue equals total variable cost.…
2. The following total cost graphs indicate which type of cost behavior? A. VARIABLE COST B. FIXED COST C. MIXED COST D. STEP COST
On the cost-volume-profit graph, the area between the total cost line and the sales line before the break-even point represents The fixed cost amount a O The contribution margin per unit b O .c O The variable cost amount .d O The loss area The profit area .e O
) Contribution margin is selling price plus unit cost. True or false
Select the correct statement concerning the cost-volume-profit graph at right: a. The point identified by "B" is the break-even point. b. Line F is the variable cost line. c. At point B, profits equal total costs. d. Line E is the total cost line. Line F Line E Line D