Ch 18/19

___ is the relative % in which a company sells its products.

• Break even point

• Contribution margin ratio

• Sales Mix

• Contribution margin

What is an advantage of using regressions analysis over high-low method?

• It is an easier method

• It uses more data points

• It is quicker to perform

• It is more expensive

Break Even Analysis

• When you observe that Total revenue = total cost

• When you observe how costs change in relation to change in activity level

• Finding (total fixed costs/contribution margin ratio)

• Figuring out how much to sell in order to hit the target net income

A cost that remains constant per unit at various levels of activity is a 

• Mixed cost

• Fixed Cost

• Manufacturing cost

• Variable cost

The amount of revenue remaining after deducting variable costs.

• Net income

• Contribution margin

• Fixed costs

• margin of safety