WorksheetsBREAKEVEN ANALYSIS
Total questions: 5
Worksheet time: 7mins
Which of the following INCREASES the BEP or Breakeven Point
decrease the Fixed Cost
decrease the SPU or selling price per unit
increase the Fixed Cost
decrease VCU or variable cost per unit
Which of the following item(s) is(are) FIXED COST
raw materials, labor/wage, variable overhead
interest expense, rent expense, salary
raw materials, utilities i.e electricity, water, telecom
For Product XY, consider the following data:
Total Sales Revenue: 25,000 OMR
Total sales quantity: 550 units
Variable cost: 13,500 OMR
Fixed cost: 6,500 OMR
What is the BEP?
210 units
310 units
410 units
110 units
What is TRUE about Margin of Safety MOS?
MOS should be small as possible
MOS should be as large as possible
MOS is not an important parameter in Breakeven Analysis
Which is(are) TRUE about Contribution Margin CM?
A.
Is a profitability index after covering Fixed cost
B.
CM must be equal to Fixed Cost for a product to be profitable
C.
CM must be greater than Fixed Cost for a product to be profitable
Both A and B
Both A and C
