Cost Volume Profit Analysis

Which one is NOT one of the five factors of Cost Volume Profit?

• Selling prices

• Unit variable costs

• Total variable costs

• Total fixed costs

Contribution Margin Ratio is calculated

• (Sales-Variable costs)/Fixed costs

• Contribution margin/Fixed costs

• (Sales-Variable costs)/Sales revenue

• Contribution margin/Variable costs

Contribution margin goes toward

• Fixed and variable costs

• Variable costs

• Only profit

• Fixed cost and profit

Which of the following are true about breakeven point

• Contribution margin equals fixed costs

• The level of sales at which profit is zero

• Contribution margin equals variable costs

• The amount of expense at which profit is zero

Once a company hits the breakeven point, net operating income will increase by the amount of BLANK for each additional unit

• Variable costs

• Contribution margin per unit

• Fixed costs

• Sales dollars

The contribution margin increase when sales volume remain the same and

• variable cost per unit decrease

• variable cost per unit increase

• fixed cost decrease

• fixed cost increase

The contribution margin ratio always increase when the

• break-even point increases

• break-even point decreases

• variable cost as a percentage of net sales decrease

• variable cost as a percentage of net sales increase

If fixed cost decrease while variable cost per unit remain constant, the new contribution margin in relation to old contribution margin will be

• unchanged

• higher

• lower

• indeterminate

• none of these

Which of the following are true about breakeven point

• Contribution margin equals fixed costs

• The level of sales at which profit is zero

• Contribution margin equals variable costs

• The amount of expense at which profit is zero

Each of the following would affect the break-even point except a change in the

• number of units sold

• variable cost per unit

• total fixed cost

• sales price per unit