Question

# ________ is the excess of sales over the cost of goods sold. A) Gross margin B)...

________ 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

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.

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

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

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.

 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.

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