In cost volume-profit analysis, a frequently made assumption is that the level of production is the same as the level of sales?

Cost-Volume profit analysis is a very precise tool in determining the profit consequences of cost changes, price changes, and volume change.

The contribution margin per unit is equal to the sales price per unit minus the variable cost per unit

On a typical break-even graph, units sold are shown on the vertical axis and both pesos of sales and pesos of costs are shown on horizontal axis.

The margin of safety can be expressed in units of product, in pesos, or as a percentage of sales.

The normal operating range of a business, which excludes extremely high and low levels of production that are not apt to be encountered, is the margin of safety.

The ratio in which a company's different products are sold is called the relevant mix

A synonym for cost volume profit analysis is break-even analysis

A key factor in almost any business decision is the impact the decision will have on the organization's profit.

Cost classification is not relevant to cost volume profit analysis

One of the assumptions of cost volume profit analysis is that a firm's total revenue changes in direct proportion to changes in sales volume. That is, the average sales price per unit of product is held constant.

The break-even point can be expressed in pesos by multiplying the breakeven units times the estimated sales price

The larger the margin of safety, the larger the risk inherent in the sales plan

Unlike the relationship between revenues or costs and sales volume, the relationship between profit and sales volume is not assumed to be linear

The contribution margin increase when sales volume remain the same and

The contribution margin ratio always increase when the

Each of the following would affect the break-even point except a change in the

In break even chart, whom cost and profit line intersects with the sales line it reveals

CVP Analysis is most important for the determination of the

If fixed cost decrease while variable cost per unit remain constant, the new contribution margin in relation to old contribution margin will be

When volume equal zero units

The alternative that would decrease the contribution margin per unit, the most is a

Break even analysis assumes over the relevant range that

Which of the following is not equal to income?

Singer Inc. sells product E for P 5 per unit. The fixed costs are P 210,000 and the variable costs are 60% of the selling price. What would be the amount of sales if Singer is to realize a profit of 10% of sales?

Clariton Company is planning to sell 100,000 units of Product Q for P 12 a unit. The fixed cost are P 280,000. In order to realize a profit of P 200,000, what would be the variable costs?

Perla Company has a projected cost of goods sold of P 4,000,000 including fixed cost of P 800,000. Variable costs are expected to be 75% of net sales. What will be the projected net sales?

The Teawalk Company is planning to sell 200,000 units of Product . The fixed costs are P 400,000 and variable costs are 60% of selling price. In order to realize a profit of P 100,000, the selling price per unit would have to be

Simon Company sells product A, B, and C. Simon sells three units of A for each unit of C, and two units of B for each unit of A. The contribution margins are P 1 per unit for A, P 1.50 for B, and P 3 per unit for C. Fixed costs are P 600,000. How many units of A would Simon sell at break-even point?

Super Co. has fixed costs of P 200,000. It has two products that it can sells these proucts at the rate of 2 units of Cid to 1 unit of Ted. The contribution margin is P 1 per unit of Cid and P 2 per unit of Ted. How many units of Ted should be sold to break-even?

The Ferry Company plans to market a new product. Based on its market studies Ferry estimates that it can sell 5,500 units in 2017. The selling price will be P 2 per unit. Variable Costs are estimated to be 40% of the selling price. Fixed Costs are estimated to be P 6,000. What is the break even point?

At break even point of 400 units sold, the variable cost were P 400 and the fixed costs were P 200. What will be the 401st unit sold contribute to profit before income taxes?

Gerber Company is planning to sell 200,000 units of product O for P 2 a unit. The contribution margin is 25%. Gerber will break even at this level of sales. What would be the fixed costs?

The following information pertains to Nova Co's. cost volume profit relationships:

Break even point in units sold 1,000

Variable Cost per unit P 500

Total Fixed Costs P 150,000

How much will be contributed to profit before income taxes by the 1001 unit sold?