The break-even point is that level of activity where a. total contribution margin equals the sum of variable cost plus fixed cost O b sales revenue equals total variable cost O c. Target profit is zero O dvariable cost equals fixed cost O e. sales revenue equals fixed cost O

The break-even point is that level of activity where a. total contribution margin equals the sum of variable cost plus fixed cost O b sales revenue equals total variable cost O c. Target profit is zero O dvariable cost equals fixed cost O e. sales revenue equals fixed cost O

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Managerial Accounting
EThe break-even point is that level of activity where
اخترأحد الخيارات
a. total contribution margin equals the sum of variable cost plus fixed cost O
p/ sales revenue equals total variable cost O
C. Target profit is zero O
d variable cost equals fixed cost O
e. sales revenue equáls fixed cost O
nship of total factory overlhead Y to directlabor hours (X) the following relationship
was found
AS5 The $2000 in the equation represents

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Which of the following is true of fixed and variable costs? Volume changes will not change the relationship between fixed and variable costs. Fixed costs are fixed in total, but vary per unit; variable costs vary in total, but are fixed per unit. As sales increase, the contribution margin percentage increases. O The relationship between sales, variable costs, and the contribution margin does not change when the sales price per unit changes. The contribution margin is what remains after fixed costs have been subtracted from total sales.
26..
15. If the total contribution margin increases and fixed costs do not change, then net income can be expected to a. decrease by an equal amount. b. increase by an amount equal to the increase in contribution margin times the CM ratio. c. increase by an equal amount. d. none of these.
5. Which of the following statements is correct: A. total fixed cost remain constant while variable cost as total increases as level of activities decreases. B. fixed cost per unit and total variable costs increases as level of activities increases. C. variable cost per unit and total fixed cost remain constant as level of activities increases. D. fixed cost per unit remain constant and variable cost per unit decreases as level of activities decreases. W Pe
The contribution margin ratio is calculated as: O a. The selling price per unit ratio /variable cost per unit ratio O b. Selling price per unit the variable cost per unit O c. None of the given answers O d. The selling price per unit/variable cost per unit e. (total sales/total sales) – variable cost ratio
The contribution margin equals sales minus all O period O variable O fixed O product expenses.
Which of the following statements about CVP analysis is false? O a. Operating income calculations in CVP analysis are based on contribution margin not gross margin. O b. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. Oc. Managers use (CVP) analysis to study the behavior of and relationship among the elements such as total revenues, total costs, and income O d. Total revenues and total costs are linear in relation to output units. O e. All of the given answers are true. LEVIOUS PAGE FINISH ATTEMPT ... Finish Esc FnLock F1 F2 F3 F4 FB F9 F10 F11 @ 23 2$ % 1 3 4 6 8. Q W E IT Y S G Y J L. C NIM 24 Alt こ0 >
As the level of activity increases, how will a mixed cost in total and per unit behave? A) B) (C) D) E) In Total Increase Increase Increase Decrease Decrease Multiple Choice Choice A Choice B Choice C Choice D Per Unit Decrease Increase No effect Increase No effect
When the total contribution margin is greater than total fixed costs, a company has Select one: a. Higher variable cost and fixed cost. b. A net loss c. Zero profit. d. Net income.
Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs can be divided into variable and fixed components O b. Costs are nonlinear Fixed cost per unit is not constant О с. O d. Sales mix of products sold does not change e. Selling price per unit does not change with volume O O 0 O O