Question : 98.If the contribution margin greater than zero, A.the selling price of : 1302728

 

 

98.If the contribution margin is greater than zero,

A.the selling price of each product is less than the variable cost per unit.

B.total variable costs are less than sales revenue.

C.the company will be profitable.

D.the fixed costs are greater than variable cost.

 

99.The incremental profit generated by the sale of one additional unit is equal to the

A.contribution margin per unit.

B.selling price.

C.margin of safety.

D.incremental cost.

 

100.Which of the following statements regarding the contribution margin ratio is not true?

A.The contribution margin ratio is equal to the contribution margin per unit divided by the selling price per unit.

B.The contribution margin ratio is the amount of each sales dollar that goes toward covering fixed costs and generating a profit.

C.The contribution margin ratio is equal to variable cost per unit divided by fixed cost per unit.

D.The contribution margin ratio is useful when companies that sell a variety of products calculate a break-even point in sales.

 

101.Holding all other factors constant, the break-even point will decline if

A.fixed costs increase.

B.the contribution margin per unit increases.

C.the selling price declines.

D.the number of units sold decreases.

 

102.Which of the following is not involved in determining the break-even point?

A.Anticipated sales for the next period

B.Total fixed costs

C.Selling price per unit

D.Variable cost per unit

 

103.Which of the following is not an assumption of CVP analysis?

A.Costs can be accurately separated into fixed and variable components.

B.Fixed costs per unit remain constant within the relevant range.

C.Total variable costs are proportional to the level of activity.

D.Selling price per unit remains the same at all activity levels.

 

104.Diva Products produces scarves. The estimated fixed costs for the year are $164,500, and the estimated variable costs per unit are $9. The company expects to produce and sell 40,000 scarves at a unit selling price of $16 per unit. How much is the break-even point in units?

A.6,580 units

B.10,300 units

C.23,500 units

D.376,000 units

 

105.Diva Products produces scarves. The estimated fixed costs for the year are $164,500, and the estimated variable costs per unit are $9. The company expects to produce and sell 40,000 scarves at a unit selling price of $16 per unit. By how much can sales revenue drop before Diva Products incurs a loss?

A.$16,500

B.$264,000

C.$23,500

D.$115,500

 

106.At Bahama Foods, the break-even point is 1,600 units. If fixed costs total $44,000 and variable costs are $12 per unit, what is the selling price per unit?

A.$15.50

B.$39.50

C.$63,200

D.There is not enough information provided to determine the answer.

 

107.Widgely Sales Company’s break-even point is 12,200 units. Each unit incurs variable costs of $2.20 and is sold for $4.90. How much are total fixed costs?

A.$24,400

B.$26,840

C.$59,780

D.$32,940

 

 

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