GE 101: Pre-final assessment

A contribution margin income statement is an income statement in which all

_______ are deducted from sales to arrive at an amount that is to be further deducted to the fixed cost.

• fixed expenses

• variable periodic expenses

• variable product cost

• total variable expenses (periodic and product)

Sales - Variable Expenses = ?

• Gross Income

• Net Income

• Contribution Margin

• Segment Margin

In essence, if there are no sales, a contribution margin income statement will

have a ____ contribution margin

• 100%

• 0

• 50%

• 100

A state wherein total cost is equal to total revenue.

• Profit

• Loss

• Breakeven Point

• Margin of Safety

These are costs that do not change with varying output.

• Variable costs

• Fixed costs

• Mixed costs

• Margin of Safety

It is the variable cost that is incur to create a unit.

• Selling price per unit

• Variable cost per unit

• Fixed price per unit

• Margin of Safety

Bealou is the managerial accountant in charge of Company A, which sells water

bottles. He previously determined that the fixed costs of Company A consist of

property taxes, a lease, and executive salaries, which add up to P100,000. The

variable costs associated with producing one water bottle is P12 per unit. The

water bottle is sold at a premium price of P22. How much is the fixed cost?

• P22

• P12

• P100,000

• P120,000

If a book’s selling price is P1000 and its variable costs are P550 to make the book, how much is the fixed cost?

• 450

• 550

• 1000

• not given

If a book’s selling price is P1000 and its variable costs are P550 to make the book, how much is the contribution margin?

• 450

• 550

• 1000

• not given

There is _____ if the Revenue is greater than the Total Cost (Variable and Fixed).

• Loss

• Profit

• Breakeven

• Segment Margin