WorksheetsQuizz 2 FAD
Total questions: 10
Worksheet time: 10mins
How do we achieve the break-even point?
With revenue that covers both variable and fixed costs.
When the contribution margin equals the variable costs.
When the contribution margin equals the analytical result.
No answer
When a company sees its revenue increase, what should normally happen to its net profit in order to maintain the same net margin rate?
It must increase
It must decrease
It must remain constant
No answer
When the break-even point is exceeded:
The company incurs losses
The company does not make profits
The company makes profits
No answer
What is meant by contribution margin?
It is the product of revenue multiplied by fixed costs
It is the break-even point in quantity
It is the break-even point multiplied by variable costs
It is the result of the formula: revenue - variable costs
To decrease its break-even point, a company should:
Decrease the selling price and/or decrease the quantity sold
Increase fixed costs and increase the unit variable cost
Decrease fixed costs and/or increase the selling price and/or decrease the unit variable cost
No answer
The owner of a pizzeria restaurant displays the following elements:
Fixed costs (FC) = 60,000 D
Variable costs (VC) = 27,500 D
Achieved revenue: 110,000 D
The contribution margin rate on variable costs is:
75%
25%
45%
No answer
If a company has Fixed Costs = 60,000 D; a contribution margin rate on variable costs = 75%; VC = 30,000 D,
Its break-even point in value is:
80,000 D
240,000 D
130,000 D
No answer
Knowing that the average price of a product is 12.5 D, and the break-even point in value is 80,000 D,
The break-even point in quantity is:
19,200 units
6,400 units
10,500 units
8,800 units
The break-even point indicates when:
The company becomes profitable
Fixed costs are covered
Variable costs are covered
No answer
Advertising expenses are considered:
Variable costs
Fixed costs
Exceptional costs
No answer
