WorksheetsGE 101: Pre-final assessment
Total questions: 25
Worksheet time: 28mins
A contribution margin income statement is an income statement in which all
_______ are deducted from sales to arrive at an amount that is to be further deducted to the fixed cost.
fixed expenses
variable periodic expenses
variable product cost
total variable expenses (periodic and product)
Sales - Variable Expenses = ?
Gross Income
Net Income
Contribution Margin
Segment Margin
In essence, if there are no sales, a contribution margin income statement will
have a ____ contribution margin
100%
0
50%
100
A state wherein total cost is equal to total revenue.
Profit
Loss
Breakeven Point
Margin of Safety
These are costs that do not change with varying output.
Variable costs
Fixed costs
Mixed costs
Margin of Safety
It is the variable cost that is incur to create a unit.
Selling price per unit
Variable cost per unit
Fixed price per unit
Margin of Safety
Bealou is the managerial accountant in charge of Company A, which sells water
bottles. He previously determined that the fixed costs of Company A consist of
property taxes, a lease, and executive salaries, which add up to P100,000. The
variable costs associated with producing one water bottle is P12 per unit. The
water bottle is sold at a premium price of P22. How much is the fixed cost?
P22
P12
P100,000
P120,000
If a book’s selling price is P1000 and its variable costs are P550 to make the book, how much is the fixed cost?
450
550
1000
not given
If a book’s selling price is P1000 and its variable costs are P550 to make the book, how much is the contribution margin?
450
550
1000
not given
There is _____ if the Revenue is greater than the Total Cost (Variable and Fixed).
Loss
Profit
Breakeven
Segment Margin
There is _____ if the Revenue is lesser than the Total Cost (Variable and Fixed).
Loss
Profit
Breakeven
Segment Margin
It is _____ if the Revenue is equal to Total Cost (Variable and Fixed).
Loss
Profit
Breakeven
Segment Margin
It is the volume of sales that the company is selling above the
break-even point.
Operating Leverage
Margin of Safety
Buffer
Profit
Margin of safety can be expressed either in units or sales in pesos.
TRUE
FALSE
Breakeven Point cannot be expressed either in units or sales in pesos.
TRUE
FALSE
In solving for margin of safety, breakeven point must be solved first.
TRUE
FALSE
? = Actual or budgeted sales – Sales required to break-even
Breakeven Point
Margin of Safety
Contribution Margin
Segment Margin
A ____ Margin of Safety reduces the risk of business losses.
lower
higher
The _____ the margin of safety, the better it is.
higher
lower
In getting the unit sale for target profit, the breakeven formula is applicable. However, the denominator must be 'Contribution Margin per unit + Target Profit'.
TRUE
FALSE
The Swiss company manufactures a single product – product X.
A unit of product X is sold to customers for $80. The per unit variable expense and the total expected
fixed expenses for the first quarter of the year 2020 are as follows:
Variable expenses to manufacture and sell a unit of product X: $50
Total fixed expenses for the first quarter of the year 2012: $40,000
The company wants to earn a profit of $80,000 for the first quarter of the year
2020.
What is the sales in units to earn a target profit of $80,000 during the first quarter of 2020.
5,000 units
4,500 units
5,500 units
4,000 units
The Swiss company manufactures a single product – product X.
A unit of product X is sold to customers for $80. The per unit variable expense and the total expected
fixed expenses for the first quarter of the year 2020 are as follows:
Variable expenses to manufacture and sell a unit of product X: $50
Total fixed expenses for the first quarter of the year 2012: $40,000
The company wants to earn a profit of $80,000 for the first quarter of the year
2020.
How much is the sales in dollars to earn a target profit of $80,000 during the first quarter of 2020.
$320,000
$350,000
$400,000
$500,000
The Swiss company manufactures a single product – product X.
A unit of product X is sold to customers for $80. The per unit variable expense and the total expected
fixed expenses for the first quarter of the year 2020 are as follows:
Variable expenses to manufacture and sell a unit of product X: $50
Total fixed expenses for the first quarter of the year 2012: $40,000
The company wants to earn a profit of $80,000 for the first quarter of the year
2020.
How much is the contribution margin per unit?
$20
$30
$15
$50
The Swiss company manufactures a single product – product X.
A unit of product X is sold to customers for $80. The per unit variable expense and the total expected
fixed expenses for the first quarter of the year 2020 are as follows:
Variable expenses to manufacture and sell a unit of product X: $50
Total fixed expenses for the first quarter of the year 2012: $40,000
The company wants to earn a profit of $80,000 for the first quarter of the year
2020.
How much is the fixed cost?
$80,000
$40,000
0
$20,000
The Swiss company manufactures a single product – product X.
A unit of product X is sold to customers for $80. The per unit variable expense and the total expected
fixed expenses for the first quarter of the year 2020 are as follows:
Variable expenses to manufacture and sell a unit of product X: $50
Total fixed expenses for the first quarter of the year 2012: $40,000
The company wants to earn a profit of $80,000 for the first quarter of the year
2020.
How much is the breakeven point in units?
1,333 units
2,667 units
