ESB Domain #4 Lesson #1 Quiz

What is the formula to calculate the selling price of a product?

• Selling Price = Cost Price + Profit

• Selling Price = Gross Profit - Expenses

• Selling Price = Fixed Costs + Variable Costs

• Selling Price = Total Revenue / Quantity Sold

How do you calculate equity using the equity formula?

• Equity = Total Assets + Total Liabilities

• Equity = Total Assets - Total Liabilities

• Equity = Total Liabilities - Total Assets

• Equity = Total Revenue - Total Liabilities

Which of the following represents the net income formula?

• Net Income = Gross Profit - Expenses

• Net Income = Total Revenue - Gross Profit

• Net Income = Total Revenue - Total Expenses

• Net Income = Gross Profit + Expenses

What is the correct formula for calculating gross profit?

• Gross Profit = Net Sales - Cost of Goods Sold

• Gross Profit = Net Income + Operating Expenses

• Gross Profit = Selling Price - Cost of Goods Sold

• Gross Profit = Total Revenue - Net Income

Which formula is used to determine the breakeven point in units?

• Breakeven Point = Fixed Costs / (Selling Price - Variable Costs)

• Breakeven Point = (Fixed Costs + Variable Costs) / Selling Price

• Breakeven Point = Fixed Costs / Variable Costs

• Breakeven Point = (Fixed Costs + Selling Price) / Variable Costs

What are fixed costs in the context of business finance?

• Costs that vary with the level of production

• Costs that remain constant regardless of the level of production

• The difference between selling price and cost price

• The total amount of money spent on marketing

Variable costs are best described as:

• Costs that do not change with the level of output

• One-time costs associated with setting up a business

• Costs that change in proportion to the level of output

• The costs incurred from borrowing money

If a company's total assets are $500,000 and its total liabilities are $300,000, what is the company's equity?

• $200,000

• $800,000

• $100,000

• $500,000

A company has a total revenue of $150,000, cost of goods sold of $60,000, and operating expenses of $30,000. What is the company's net income?

• $60,000

• $90,000

• $150,000

• $120,000

If the fixed costs are $10,000, the selling price per unit is $50, and the variable cost per unit is $30, how many units must be sold to break even?

• 500 units

• 200 units

• 333 units

• 1000 units