Break-even

Which of the following is not a direct cost of production for a car manufacturer?

• Raw materials

• Wages of production workers

• Factory rental cost

• Depreciation

Which is the following is a direct cost to a computer retailer

• Marketing cost

• After-sales care

• Rental cost

• Depreciation of delivery vehicle

Contribution per unit is calculated by ______ price minus the ____ variable cost.

• Average, total

• Total, average

• Selling, Average

• Total , Total

Contribution per unit is calculated by using the formula

• Price minus average fixed costs

• Price minus average variable costs

• Total revenue minus total costs

• Total revenue equals total costs

Total contribution is difference between

• Total revenue and total variable costs

• Total revenue and total costs

• Price and total costs

• Price and variable costs

Which of the following is a strength break-even analysis?

• It assumes that all output is sold.

• It accounts for variances in actual sales and planned output

• It assumes that all output is sold at one price

• It accounts for both fixed and variable cost

A premium hotel can raise its revenue in a number of ways, except for:

• Reducing fixed cost

• Reducing its prices

• Reducing labor costs

• Raising prices during peak periods

What can be worked out from calculating the price of a product and its variable cost?

• Total contribution

• Unit contribution

• Break-even point

• Profit per unit

A firm sales revenue of $5 million from sales volume of 4000 units. Its average cost are $600. Fixed cost are $1 million. What is the total contribution for the firm.

• $1.6 million

• $2.4 million

• $2.6 million

• $3.6 million

Which of the following cost will continually decline for taxi driver as the mileage covered increases?

• Total variable costs

• Total fixed costs

• Average variable costs

• Average fixed cost