The break-even point is that level of activity where:

The unit contribution margin is calculated as the difference between:

Which of the following would produce the largest increase in the contribution margin per unit?

Which of the following would take place if a company were able to reduce its variable cost per unit? Contribution margin / Break-even point:

Which of the following would take place if a company experienced an increase in fixed costs?

Assuming no change in sales volume, an increase in a firm's per-unit contribution margin would:

A company that desires to lower its break-even point should strive to:

A company has fixed costs of $$P900$$ and a per-unit contribution margin of $$P3$$ . Which of the following statements is (are) true?

Sanderson sells a single product for $$P50$$ that has a variable cost of $$P30$$ . Fixed costs amount to $$P5$$ per unit when anticipated sales targets are met. If the company sells one unit in excess of its break-even volume, the bottom-line profit will be:

At a volume of 15,000 units, Boston reported sales revenues of $$P600{,}000$$ , variable costs of $$P225{,}000$$ , and fixed costs of $$P120{,}000$$ . The company's contribution margin per unit is:

A recent income statement of Fox Corporation reported the following data: Sales revenue P 3,600,000 Variable costs 1,600,000 Fixed costs 1,000,000 If these data are based on the sale of 10,000 units, the break-even point would be:

A recent income statement of Yale Corporation reported the following data: Sales revenue P 2,500,000 Variable costs 1,500,000 Fixed costs 800,000 If these data are based on the sale of 5,000 units, the break-even sales would be:

Orion recently reported sales revenues of P800,000, a total contribution margin of P300,000, and fixed costs of P180,000. If sales volume amounted to 10,000 units, the company's variable cost per unit must have been:

Strand has a break-even point of 120,000 units. If the firm's sole product sells for P40 and fixed costs total P480,000, the variable cost per unit must be:

Ribco Co., makes and sells only one product. The unit contribution margin is P6 and the break-even point in unit sales is 24,000. The company's fixed costs are:

The contribution-margin ratio is:

At a volume level of 500,000 units, Sullivan reported the following information: Sales price per unit P 60 Variable cost per unit 20 Fixed cost per unit 4 The company's contribution-margin ratio is:

Which of the following expressions can be used to calculate the break-even point with the contribution-margin ratio (CMR)?

A recent income statement of Oslo Corporation reported the following data: Units sold 8,000; Sales revenue P7,200,000; Variable costs P4,000,000; Fixed costs P1,600,000. If the company desired to earn a target net profit of P480,000, it would have to sell how many units?

Yellow, Inc., sells a single product for P10. Variable costs are P4 per unit and fixed costs total P120,000 at a volume level of 10,000 units. What dollar sales level would Yellow have to achieve to earn a target net profit of P240,000?

Archie sells a single product for P50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to P400,000. Current sales total 16,000 units. Archie will break-even by selling how many units?

Archie sells a single product for P50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to P400,000. Current sales total 16,000 units. Each unit that the company sells will do what to overall profitability?

Archie sells a single product for P50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to P400,000. Current sales total 16,000 units. In order to produce a target profit of P22,000, Archie's dollar sales must total how much?

The difference between budgeted sales revenue and break-even sales revenue is the:

Maxie's budget for the upcoming year revealed the following figures: Sales revenue P840,000; Contribution margin P504,000; Net income P54,000. If the company's break-even sales total P750,000, Maxie's safety margin would be:

Dana sells a single product at P20 per unit. The firm's most recent income statement revealed unit sales of 100,000, variable costs of P800,000, and fixed costs of P400,000. If a P4 drop in selling price will boost unit sales volume by 20%, the company will experience which of the following?

Grimes is studying the profitability of a change in operation and has gathered the following information: Current operation—Fixed costs P38,000; Selling price P16; Variable cost P10; Sales (units) 9,000. Anticipated operation—Fixed costs P48,000; Selling price P22; Variable cost P12; Sales (units) 6,000. Should Grimes make the change?

Gleason sells a single product at P14 per unit. The firm's most recent income statement revealed unit sales of 80,000, variable costs of P800,000, and fixed costs of P560,000. Management believes that a P3 drop in selling price will boost unit sales volume by 20%. Which of the following correctly depicts how these two changes will affect the company's break-even point? Drop in Sales Price / Increase in Sales Volume

All other things being equal, a company that sells multiple products should attempt to structure its sales mix so the greatest portion of the mix is composed of those products with the highest:

O'Dell sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows: Product R—Sales Volume 16,000 units, Selling Price P14, Variable Cost P9; Product S—Sales Volume 12,000 units, Selling Price P10, Variable Cost P6; Product T—Sales Volume 52,000 units, Selling Price P11, Variable Cost P8. The company's weighted-average unit contribution margin is:

Wells Corporation has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%. Fixed costs total P400,000 and the weighted-average contribution margin is P100. How many units of product A must be sold to break-even?

Use the following to answer the next items: Lamar & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Unit selling price—Plain P20.00, Fancy P35.00; Variable cost per unit—Plain P12.00, Fancy P24.50. Sixty percent of the unit sales are Plain, and annual fixed expenses are P45,000. The weighted-average unit contribution margin is:

Use the following to answer the next items: Lamar & Co. makes and sells two types of shoes, Plain and Fancy. Data: Unit selling price—Plain P20.00, Fancy P35.00; Variable cost per unit—Plain P12.00, Fancy P24.50. Sixty percent of the unit sales are Plain, and annual fixed expenses are P45,000. Assuming that the sales mix remains constant, the total number of units that the company must sell to break even is:

Use the following to answer the next items: Lamar & Co. makes and sells two types of shoes, Plain and Fancy. Data: Unit selling price—Plain P20.00, Fancy P35.00; Variable cost per unit—Plain P12.00, Fancy P24.50. Sixty percent of the unit sales are Plain, and annual fixed expenses are P45,000. Assuming that the sales mix remains constant, the number of units of Plain that the company must sell to break even is:

Use the following to answer the next items: Lamar & Co. makes and sells two types of shoes, Plain and Fancy. Data: Unit selling price—Plain P20.00, Fancy P35.00; Variable cost per unit—Plain P12.00, Fancy P24.50. Sixty percent of the unit sales are Plain, and annual fixed expenses are P45,000. Assuming that the sales mix remains constant, the number of units of Fancy that the company must sell to break even is:

Cost-volume-profit analysis is based on certain general assumptions. Which of the following is not one of these assumptions?

The assumptions on which cost-volume-profit analysis is based appear to be most valid for businesses:

The contribution income statement differs from the traditional income statement in which of the following ways?

Which of the following does not typically appear on an income statement prepared by using a traditional format?

The extent to which an organization uses fixed costs in its cost structure is measured by:

A manager who wants to determine the percentage impact on net income of a given percentage change in sales would multiply the percentage increase/decrease in sales revenue by the:

Which of the following calculations can be used to measure a company's degree of operating leverage?

You are analyzing Becker Corporation and Newton Corporation and have concluded that Becker has a higher operating leverage factor than Newton. Which one of the following choices correctly depicts (1) the relative use of fixed costs (as opposed to variable costs) for the two companies and (2) the percentage change in income caused by a change in sales?

The following information relates to Day Company: Sales revenue $$P\ 12{,}000{,}000$$ ; Contribution margin $$4{,}800{,}000$$ ; Net income $$800{,}000$$ . Day's operating leverage factor is:

Use the following to answer this question: Edco Company produced and sold 45,000 units of a single product last year, with the following results: Sales revenue P 1,350,000. Manufacturing costs—Variable 585,000; Fixed 270,000. Selling costs—Variable 40,500; Fixed 54,000. Administrative costs—Variable 184,500; Fixed 108,000. Edco's operating leverage factor was:

Use the following to answer this question: Edco Company produced and sold 45,000 units of a single product last year, with the following results: Sales revenue P 1,350,000. Manufacturing costs—Variable 585,000; Fixed 270,000. Selling costs—Variable 40,500; Fixed 54,000. Administrative costs—Variable 184,500; Fixed 108,000. If Edco's sales revenues increase 15%, what will be the percentage increase in income before income taxes?

When advanced manufacturing systems are installed, what effect does such installation usually have on fixed costs and the break-even point?

A company, subject to a 40% tax rate, desires to earn P500,000 of after-tax income. How much should the firm add to fixed costs when figuring the sales revenues necessary to produce this income level?

Barney, Inc., is subject to a 40% income tax rate. The following data pertain to the period just ended when the company produced and sold 45,000 units: Sales revenue P 1,350,000; Variable costs 810,000; Fixed costs 432,000. How many units must Barney sell to earn an after-tax profit of P180,000?