
Break-even Analysis
Authored by tasya2202@yahoo.com tasya2202@yahoo.com
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16 questions
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1.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
What is a business doing at the break even point?
Making a loss
Producing the startup output
Making neither a profit nor a loss
Making a profit.
2.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
What is the correct definition of the break even point?
The point at which sales revenue = fixed costs
The difference between selling price and the total variable costs
The revenue gained from selling every unit of output made
The total sales needed to cover the total costs of the business
3.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
Total contribution = ?
Total sales less total variable costs
Total sales less fixed costs
Variable costs less fixed costs
Total selling price less fixed costs.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If the selling price per unit is $ 100 and contribution per unit is $ 75, what are the total variable costs if 150 units are sold?
$ 11,250
$ 15,000
Not possible to calculate
$ 3,750
5.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
What happens to break-even output if contribution per unit increases and fixed costs stay the same?
It stays the same
It is cancelled out
It increases
It falls
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Use these figures to calculate profit: fixed costs $ 14,750, SP $ 9 per unit: VC per unit $ 4; Units made and sold 3,500.
$ 16,750
- $ 750
$ 2,750
- $ 2,750
7.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
What happens to fixed costs if there is a decrease in contribution per unit?
Fixed costs decreases
The margin of safety falls
Fixed costs increases
No-change fixed costs are not affected.
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