The break-even point is that level of activity where:Select one:Oa. profit equals to zero.Ob. total contribution margin equals the sum of variable cost plus fixed cost.Oc. variable cost equals fixed cost.d. sales revenue equals total variable cost.Oe. total revenue equals total fixed cost.Ne

Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

The break-even point is that level of activity where: Select one: O a. profit equals to zero. O b. total contribution margin equals the sum of variable cost plus fixed c O C. variable cost equals fixed cost. sales revenue eguale tetalvariabl

The break-even point is that level of activity where: Select one: O a. profit equals to zero. O b. total contribution margin equals the sum of variable cost plus fixed c O C. variable cost equals fixed cost. sales revenue eguale tetalvariabl

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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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
Select the correct statement concerning the cost-volume-profit graph at right: At point B, profits equal total costs. Line E is the total cost line. Line F is the variable cost line. The point identified by "B" is the break-even point.
Select the correct statement concerning the below cost-volume-profit graph: Line E A O d. O e. O a. None b. At point B, profits equal total costs. O c. Line E is the total sales line. d. Line F is the Total sales line. e. The point identified by "B" is the breakeven point. The break-even point is where B Line F Oa. None O b. total sales equal total fixed costs. O c. total variable costs equal total fixed costs. total sales equal total variable costs. Line D contribution margin ratio equals total fixed costs. O a. 190 000 b. None OC. 0.73 22 The following monthly data are available for Lumberyard Company which produces only one product: Break-even level in sales of dollars: $530 000 Budgeted sales in dollars for the month of June: $720 000 d. 1 250 000 e. 1.35 How much is the margin of safety for the company for June?
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
The break-even point is where O a. total variable costs equal total fixed costs. O b. total sales equal total variable costs. c. total sales equal total fixed costs. O d. contribution margin ratio equals total fixed costs. Oe. None
The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable cost ratio. b.Contribution margin per unit / Price. c.Total contribution margin / Total sales. d.Fixed costs / Contribution margin ratio. e.All of these choices are correct. Total contribution margin divided by total sales is the: a.contribution margin ratio. b.sales ratio. c.target income. d.margin of safety. e.indifference point.
In the CVP analysis, the point of breakeven is where a. total sales revenues equal total fixed costs Ob. None of the given answers С. contribution margin equals total costs d. total sales revenues equal total variable costs е. total sales revenues plus the total variable costs equal total fixed costs
3. Which of the following is defined as the ratio of fixed expenses to the unit contribution margin? Select one: a. Break-even point in unit sales. b. Margin of safety c. Contribution margin ratio d. Profit margin
In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple Choice O O O "Y" is the independent variable. "a" is the variable cost per unit. "a" and "b" are valid for all levels of activity. in the high-low method, "b" equals the change in cost divided by the change in activity.
In describing the cost formula equation, Y = a + bX, which of the following is correct: Select one or more: a. (a) means variable cost per unit b. (X) means total variable cost V c. (a) means fixed cost d. (y) means total fixed costs
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.…
Contribution margin is a.the same as sales revenue b.the excess of sales over variable costs c.another term for volume in the "cost-volume-profit" analysis d.profit