Cost-Volume-Profit Analysis (D5)

Point X, where the company's Total Revenue = Total Costs is known as the ________________.

• Profit-making point

• Break-even point

• Contribution Margin point

• Target-Income point

Cost-Volume-Profit (CVP) analysis shows how operating profit is affected by changes in ________, _________and _____________.

[Hint: More than one correct answers. Select all that applies.]

• variable costs

• fixed costs

• selling price

• Interest Rate

The difference between a company's total revenue and total variable costs is known as ____________________.

 

Consider the following costs information of a plate of Ayam Penyet:

Selling Price- $5 per unit

Variable Cost - $2 per unit

Fixed Cost -$1,000 per month

What is the Unit Contribution Margin?

• $3

• $5

• $2

• $1000

Consider the same Ayam Penyet example:

Selling Price- $5 per unit

Variable Cost - $2 per unit

Fixed Cost -$1,000 per month

Unit Contribution Margin = $3

How do I calculate the number of Ayam Penyet I have to sell to break even?

• Fixed Cost / Unit Contribution Margin

• Selling Price - Variable Cost

• Fixed Cost x Unit Contribution Margin

• Variable Cost / Unit contribution Margin