Question

________ 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 different break-even point.

B) Changes in the sales-mix of products sold affects a company's net operating profit.

C) Changes in the sales-mix of products sold affects a company's contribution margin.

D) If the sales-mix of products sold changes, the break-even point does not change.

Answer:

With mixed costs, the ________ element is unchanged over the relevant range and the ________ element varies proportionately with cost-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 $8 per unit and total fixed costs are $32,000. What is the break-even point 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 on the 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.

Answer 1

1
Gross margin is the excess of sales over the cost of goods sold.
2
is the excess of sales over the cost of goods sold is FALSE
3
With mixed costs, the fixed cost element is unchanged over the relevant range and the variable cost element varies proportionately with cost-driver activity.
4
Break-even point in units = 32000/8= 4000
5
If the selling price per unit increases,The break-even point decreases.