Quiz 2. The profitability Analysis

How do we obtain a break-even point?

• With a turnover that covers both variable and fixed costs. BEP => Sales =All costs (FC+VC)

• When the margin on variable costs is equal to variable costs

• When the contribution margin is equal to the analytical result.

• No answer

An industrial company manufactures and sells a product X. It has a variable unit cost of 9 dinars and annual fixed costs of 60,000 dinars. Knowing that the break-even point in terms of quantity is equal to 10,000 units.

Its margin on unit variable cost will be equal to :

• 5 DINARS

• 6 DINARS

• 7 DINARS

• NO ANSWER

The break-even point is the turnover:

• For which the result is zero

• For which variable costs are covered

• For which the result is positive

• No answer

The break-even point for a product is reached after 190 days, which corresponds approximately to the date of :

• 1rst July

• 10 July

• 15 July

• 20 July

To reduce its break-even point, a company must :

• Reduce the selling price and/or the quantity sold

• Reduce fixed costs and/or increase selling prices and/or reduce variable unit costs

• Reduce fixed costs and increase variable unit costs

• No answer

Variable costs are costs that change over time:

• depending on the activity

• proportionally to the profit

• over time

• by level

If a company has a margin on variable costs of 6 D and a unit VC of 9 D, the selling price will be equal to :

• 14 DINARS

• 15 DINARS

• 16 DINARS

• NO ANSWER

For a company with a break-even point of D150,000, achieved after 5 months,

Determine the resulting turnover?

• 350 000 D

• 355 000 D

• 360 000 D

• No answer

Loan interest must be classified as an expense:

• Fixed cost

• variable cost

The company is profitable when :

• Turnover=BEP

• Turnover>BEP

• Turnover<BEP

• No answer