Question

true or false

a) a price increase gives a higher break-even

b- With coverage, it is understood how much of the sales remains after deducting the variable costs

c- The percentage of earnings is always greater than when the same profit is expressed as profit margin

d- if the two orders are 40% and direct pay per piece (dL) is 25 kronor, then the distributed manufacturing costs will be SEK 10

e-A joint expense should never be included in a grant calculation

f- In a premium section with a narrow section, you should always choose the product that provides the highest coverage contribution per piece

g-we get a positive capital value if the sum of all present value calculate future payments is greater than the initial investment

h-A residual value is due to the fact that the technical life expectancy is longer than the economic life

i- An amortization is no one why a repayment of a bank debt does not directly affect earnings

Answer 1

a) False, as price increase gives higher contribution which provides lower BE.
b) True, contribution means sales over VC.
c) False, percentage of volume would be greater when the same profit is expressed as profit margin.
d) not clear of statement?
e) True, joint expense is a avoidable cost.
f) True, premium section have lower volume, so higher profit can be achieved on higher contribution only.
g) True, positive NPV will add to the capital.
h) True, an asset's technical life is higher to economic, so it has residual value after getting fully depreciated.