Quizz 1 FAD

Considered as indicators of projected profitability analysis:

• • Financial profitability

• • Asset profitability

• • Economic profitability

• • Break-even point

The break-even point serves to:

• • Identify the company's gains

• • Know the health status of the company

• • Determine if a product is profitable

• • No answer

The maintenance of premises is:

• • Fixed Costs

• • Exceptional Costs

• • Variable Costs

• • No answer

The unit variable cost margin rate is considered as:

• • The difference between revenue and variable costs

• • The difference between revenue and fixed costs

• • The ratio of variable cost margin to revenue

• • Variable costs

A company offers services that it charges 20 D per person. Its fixed costs per service amount to 30 D, and its variable costs per person are 14 D.

What is the amount of the unit variable cost margin rate?

• • 20%

• • 14%

• • 30%

• • 6%

If a company has fixed costs of 30 D, variable costs of 15 D, and a contribution margin ratio of 30%, what is its break-even point in value?

• 5 D

• 100 D

• 20 D

• 30 D

A company offers a service at a unit price of 20D. Given that its break-even point in value is equal to 100D and its contribution margin ratio is 30%, what is its break-even point in volume?

• 5 people

• 10 people

• 20 people

• 14 people

For identical fixed costs, the lower the margin rate, the lower the break-even point?

• True

• False

What are the other terms that are sometimes used to refer to the break-even point?

• • Zero margin

• • Dead point when expressed in days of revenue

• • Break-even point

• • Critical revenue

At the break-even point:

• • The unit fixed cost is at a minimum.

• • The sum of the unit fixed cost and the unit variable cost is equal to the unit selling price.

• • The contribution margin per unit is equal to the unit fixed cost.

• • The unit variable cost equals the unit fixed cost.