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WorksheetsPRICOS Online Quiz #3
Total questions: 20
Worksheet time: 20mins
Scenario: A company sells a product for P20 per unit. The variable cost per unit is P12, and the fixed costs are P30,000 per year.
Question: The contribution margin per unit for the given scenario is P8.
TRUE
FALSE
Fixed costs are costs that remain constant regardless of the level of sales.
TRUE
FALSE
The break-even point can be calculated by dividing the fixed costs by the contribution margin per unit.
TRUE
FALSE
If the selling price per unit increases, the break-even point in units will decrease.
TRUE
FALSE
If the variable cost per unit increases, the contribution margin per unit will decrease.
TRUE
FALSE
The margin of safety represents the amount of sales above the break-even point.
TRUE
FALSE
If the actual sales revenue is equal to the break-even sales revenue, the margin of safety is zero.
TRUE
FALSE
The target profit is the amount of profit a company desires to earn after deducting fixed and variable costs.
TRUE
FALSE
If the fixed costs increase, the break-even point in units will decrease.
TRUE
FALSE
If the contribution margin per unit decreases, the break-even point in units will decrease.
TRUE
FALSE
A company sells a product for P20 per unit. The variable cost per unit is P12, and the fixed costs are P30,000 per year. What is the contribution margin per unit?
P8
P12
P20
P30
What are fixed costs?
Costs that remain constant regardless of the level of sales.
Costs that vary with the level of sales.
Costs that are incurred for each unit produced.
Costs that are incurred only if a product is sold.
What is the formula for calculating the break-even point in units?
Fixed costs / Selling price per unit
Fixed costs / Variable cost per unit
Fixed costs / Contribution margin per unit
Selling price per unit / Variable cost per unit
A company sells a product for P20 per unit. The variable cost per unit is P12, and the fixed costs are P30,000 per year. What is the break-even point (in units) for the company?
2,500 units
3,000 units
3,750 units
4,500 units
Scenario: A company sells a product for P20 per unit. The variable cost per unit is P12, and the fixed costs are P30,000 per year. What is the break-even point (in pesos) for the company?
P40,000
P60,000
P75,000
P90,000
What is the formula for calculating the margin of safety?
Actual sales - Breakeven sales
Actual sales - Fixed costs
Target profit / Contribution margin per unit
Fixed costs / Contribution margin per unit
Scenario: A company sells a product for P20 per unit. The variable cost per unit is P12, and the fixed costs are P30,000 per year. If the company sells 5,000 units, what is its margin of safety (in pesos)?
P10,000
P15,000
P20,000
P25,000
Scenario: A company sells a product for P20 per unit. The variable cost per unit is P12, and the fixed costs are P30,000 per year. What is the target profit if the company wants to earn P50,000?
P60,000
P62,500
P72,000
P75,000
Scenario: A company sells a product for P20 per unit. The variable cost per unit is P12, and the fixed costs are P30,000 per year. If the company wants to earn a target profit of P25,000, how many units does it need to sell?
5,000 units
6,250 units
7,500 units
8,750 units
Scenario: A company sells a product for P20 per unit. The variable cost per unit is P12, and the fixed costs are P30,000 per year. What is the total contribution margin for selling 6,000 units of the product?
P6,000
P48,000
P72,000
P108,000
