Break-even Analysis

Break-even Analysis

University

16 Qs

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Break-even Analysis

Break-even Analysis

Assessment

Quiz

Other

University

Hard

Created by

tasya2202@yahoo.com tasya2202@yahoo.com

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16 questions

Show all answers

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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