The contribution margin increase when sales volume remain the same and

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

Break-even point is the point where:

Break-even Point can be calculated using these method except :

Cost volume profit analysis can be used to determine the effects of reduced in selling prices, increased in fixed costs and reduced in variable costs on break-even points.

In cost volume-profit analysis, a frequently made assumption is that the level of production is equal with the level of sales.

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 RM of sales and RM of costs are shown on horizontal axis.

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

A key factor in almost any business decision is the impact of the decision 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 constant.

The break-even point in RM can be calculated by multiplying the break-even point in units with the sales price per unit.

The larger the margin of safety, the larger the risk of getting loss

In Cost Volume Profit analysis graph, the intersect line between total costs and total sales will be a __________.

Cost Volume Profit Analysis is most important for the company to determine the ___________________

The higher Break-even point the better it is.

The higher Margin of Safety, the better it is.

In order to calculate Break-even point and Cost Volume Profit analysis, what equation can be used?