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