________ is the excess of sales over the cost of goods sold.
A) Gross margin
B) Contribution-margin ratio
C) Variable-cost ratio
D) Contribution margin
Answer:
Which statement is FALSE?
A) Each different sales-mix of products has a differentbreak-even point.
B) Changes in the sales-mix of products sold affects a company'snet operating profit.
C) Changes in the sales-mix of products sold affects a company'scontribution margin.
D) If the sales-mix of products sold changes, the break-evenpoint does not change.
Answer:
With mixed costs, the ________ element is unchanged over therelevant range and the ________ element varies proportionately withcost-driver activity.
A) variable cost; fixed cost
B) fixed cost; variable cost
C) fixed cost; step cost
D) step cost; variable cost
Answer:
The sales price is $30 per unit, the contribution margin is $8per unit and total fixed costs are $32,000. What is the break-evenpoint in units?
A) 857
B) 1,200
C) 2,000
D) 4,000
Answer:
If the selling price per unit increases, what is the effect onthe break-even point? (Assume no other changes.)
A) The break-even point increases.
B) The break-even point decreases.
C) The break-even point remains the same.
D) The break-even point is zero.
________ is the excess of sales over the cost of goods sold.
A) Gross margin
B) Contribution-margin ratio
C) Variable-cost ratio
D) Contribution margin
Answer:
Which statement is FALSE?
A) Each different sales-mix of products has a differentbreak-even point.
B) Changes in the sales-mix of products sold affects a company'snet operating profit.
C) Changes in the sales-mix of products sold affects a company'scontribution margin.
D) If the sales-mix of products sold changes, the break-evenpoint does not change.
Answer:
With mixed costs, the ________ element is unchanged over therelevant range and the ________ element varies proportionately withcost-driver activity.
A) variable cost; fixed cost
B) fixed cost; variable cost
C) fixed cost; step cost
D) step cost; variable cost
Answer:
The sales price is $30 per unit, the contribution margin is $8per unit and total fixed costs are $32,000. What is the break-evenpoint in units?
A) 857
B) 1,200
C) 2,000
D) 4,000
Answer:
If the selling price per unit increases, what is the effect onthe break-even point? (Assume no other changes.)
A) The break-even point increases.
B) The break-even point decreases.
C) The break-even point remains the same.
D) The break-even point is zero.
Related questions
Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $1,179,900. The unit sellingprice, variable cost per unit, and contribution margin per unit forthe company's two products are provided below.
| Product | Selling Price | Variable Cost per Unit | Contribution Margin per Unit | ||||||
| Q | $360 | $140 | $220 | ||||||
| Z | 270 | 150 | 120 | ||||||
The sales mix for products Q and Z is 70% and 30%, respectively.Determine the break-even point in units of Q and Z. If required,round your answers to the nearest whole number.
a. Product Q units
b. Product Z units
7. Bobby Company has fixed costs of $160,000. The unit sellingprice, variable cost per unit, and contribution margin per unit forthe company�s two products are provided below.
Product | Selling Price per unit | Variable Cost per unit | Contribution Margin per unit |
X | $180 | $100 | $80 |
Y | $100 | $60 | $40 |
The sales mix for product X and Y is 60% and 40% respectively.Determine the break-even point in units of X and Y.
