Break Even and Cost Analysis Quiz

What is the break-even point in units if the fixed costs are £500, the selling price per unit is £25, and the variable cost per unit is £15?

• 20 units

• 25 units

• 50 units

• 100 units

If a company sells 200 units, has a break-even point of 150 units, what is the margin of safety in units?

• 50 units

• 100 units

• 150 units

• 200 units

How does an increase in fixed costs affect the break-even point, assuming all other factors remain constant?

• Decreases the break-even point

• Increases the break-even point

• No effect on the break-even point

• Break-even point becomes zero

If the variable cost per unit decreases, what happens to the break-even point, assuming all other factors remain constant?

• Break-even point increases

• Break-even point decreases

• Break-even point remains the same

• Break-even point becomes zero

A company has fixed costs of £1,000, a selling price of £50 per unit, and variable costs of £30 per unit. What is the break-even point in units?

• 20 units

• 25 units

• 33 units

• 50 units

What is the impact on the margin of safety if the selling price per unit increases, assuming sales volume remains constant?

• Margin of safety increases

• Margin of safety decreases

• Margin of safety remains the same

• Margin of safety becomes zero

If a company reduces its selling price, what is the likely effect on the break-even point?

• Break-even point increases

• Break-even point decreases

• Break-even point remains the same

• Break-even point becomes zero

A business has a margin of safety of 40 units and sells 200 units. What is the break-even point in units?

• 160 units

• 180 units

• 200 units

• 240 units

How does an increase in variable costs per unit affect the break-even point, assuming all other factors remain constant?

• Decreases the break-even point

• Increases the break-even point

• No effect on the break-even point

• Break-even point becomes zero

If a company has fixed costs of £2,000, a selling price of £40 per unit, and variable costs of £20 per unit, what is the break-even point in units?

• 50 units

• 75 units

• 100 units

• 150 units