The breakeven point is: Multiple Choice The sales volume at which the total contribution margin exceeds total variable costs. The sales volume at which revenues equal total cost plus an operating profit of zero. The sales volume at which revenues equal fixed cost and profit is zero. The sales volume at which revenues equal variable cost and profit is zero. The point at which revenues meet the budget target.

The breakeven point is: Multiple Choice The sales volume at which the total contribution margin exceeds total variable costs. The sales volume at which revenues equal total cost plus an operating profit of zero. The sales volume at which revenues equal fixed cost and profit is zero. The sales volume at which revenues equal variable cost and profit is zero. The point at which revenues meet the budget target.

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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The cost-volume-profit analysis for a breakeven chart does not assume Group of answer choices Some costs vary inversely with volume. Production will equal sales. Costs are linear and continuous over the relevant range. Price will remain fixed.
Contribution margin dividedt by Income is the: Multiple Choice Contribution margin ratio. Margin of safety. Degree of operating leverage. Sales mix. Break-even point in units.
Sometimes management prefers that the break-even point be expressed in sales dollars rather than units. This can be accomplished by using the contribution margin per unit Select one: O True O False
1. To compute the breakeven point using the contribution margin, we get the ratio of a. Total fixed expenses and Total contribution margin b. Total variable expenses and Total Contribution margin c. Total fixed expenses and Contribution margin per unit d. Total variable expenses and Contribution margin per unit 2. A mathematical expression that describes a breakeven point of a company is a. Sales Revenue = Variable expenses + Fixed expenses b. Sales Revenue = Variable expenses - Fixed expenses c. Sales Revenue < Variable expenses + Fixed expenses d. Sales Revenue > Variable expenses - Fixed expenses 3. The Cost-Volume-Profit equation is given by a. Sales Revenue = Profits + Contribution margin ratio + Fixed expenses b. Sales Revenue = Profits + Contribution margin + Fixed expenses c. Sales Revenue = Profits+ Variable expenses + Fixed expenses d. Sales Revenue = Profits -Variable expenses…
On the break-even chart you can see the three variants of the break-even points. Name the items marked with numbers in the figure. Choose the correct answers. 7 10 6 Choose... Choose... 7 Choose... 1 Choose... 9. Choose... v Choose... Total cost function (linear) Turning point of profitability Target profit (expected profit) Turning point of economic efficiency Volume Amortisation Total cost - amortisation Total revenue function Turning point of liquidity Total cost + Target profit
On the costvolume - profit graph which of the following would result into a decrease in the breakeven point (Assuming other factors remain unchanged )? a. Decrease in number of units sold b.Decrease in selling price per unit c. Increase in fixed costs d. Decrease in variable cost per unit e. None of the given answers
CLEAR MY CHOICE 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. All of the given answers are true. O c. Total revenues and total costs are linear in relation to output units. O d. Managers use (CVP) analysis to study the behavior of and relationship among the elements such as total revenues, total costs, and income O e. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. NEXT PAC AGE ere to search
All of the following represents a cost-volume-profit relationship except: a. Total contribution margin + variable xpenses = variable expenses + fixed expenses profit b. Sales = totalexpe expenses + profit O cSales - variable senses + profit = fied expenses O d. Profit = totalcontri contribution margin- fixed expenses O e Sales - Variable expenses = fixed expenses + profit
Break-even analysis assumes over the relevant range that Group of answer choices total variable costs are linear. fixed costs per unit are constant. total variable costs are nonlinear. total revenue is nonlinear.
Accounting Discuss why the balance sheet is a crucial tool for assessing company financial health?
Contribution margin is Oa. profit Ob. the excess of sales over variable costs Oc. Oc. another term for volume in the "cost-volume-profit" analysis Od. the same as sales revenue
The margin of safety can be defined as the excess of budgeted sales over: break-even sales. net income. fixed costs. variable costs.Question