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WorksheetsBreak-even and contribution
Total questions: 11
Worksheet time: 23mins
Fixed costs do not change in total when there is a small change in sales.
True
False
An example of a fixed expense would be...
Raw materials
Rent
Sales commission on each sale
Packaging
Property taxes and marketing are often fixed costs.
True
False
An example of a variable expense is an office manager's monthly salary.
True
False
What definition is this?
The money left on the sale of one unit, after all variable expenses have been subtracted from the related revenue.
Break-even
Total contribution
Contribution per unit
Margin of safety
Break-even point is the point where revenues equal the total fixed costs.
True
False
A business is selling their product for $10. Their variable cost are $4 per unit and fixed costs are $1500. They sell 1,000 per month. What is the contribution per unit?
$6
$4
$500
1000 items
A business is selling their product for $10. Their variable cost are $4 per unit and fixed costs are $1500. They sell 1,000 per month. What is the total contribution?
$4
$10
$1500
$6000
A business is selling their product for $10. Their variable cost are $4 per unit and fixed costs are $1500. They sell 1,000 per month. What is the profit or loss?
$6 profit
$500 profit
$500 loss
$4500 profit
A business is selling their product for $10. Their variable cost are $4 per unit and fixed costs are $1500. They sell 1,000 per month. What is the break-even point?
$250
250 units
$15
15 units
A business is selling their product for $10. Their variable cost are $4 per unit and fixed costs are $1500. They sell 1,000 per month. What is the margin of safety?
250 units
500 units
750 units
1000 units
