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    The document contains 5 multiple choice questions regarding break-even analysis concepts such as contribution margin ratio, contribution margin per unit, fixed costs, break-even point, and margin of safety. The questions ask the reader to calculate or identify these values based on information provided in the questions. The document also provides the answer key for each question.

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    The document contains 5 multiple choice questions regarding break-even analysis concepts such as contribution margin ratio, contribution margin per unit, fixed costs, break-even point, and margin of safety. The questions ask the reader to calculate or identify these values based on information provided in the questions. The document also provides the answer key for each question.

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    14 views1 page

    4 PDF

    Uploaded by

    El - lool
    The document contains 5 multiple choice questions regarding break-even analysis concepts such as contribution margin ratio, contribution margin per unit, fixed costs, break-even point, and margin of safety. The questions ask the reader to calculate or identify these values based on information provided in the questions. The document also provides the answer key for each question.

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    of 1

    15.If contribution margin ratio is 0.

    4 and total fixed cost is $280,000, the break-even


    point in dollars will be: BEP(in doller)= F.C/CMR
    a. $700,000
    b. $112,000
    c. $812,000
    d. $1,120,000
    Ans: a

    16.If total fixed cost is $8,000 and break-even point is 4,000 units, the contribution margin
    per unit will be:
    a. $0.5
    b. $50
    c. $20
    d. $2
    Ans: d

    17.If contribution margin percentage is 25% and contribution margin per unit is $500, the
    selling price per unit will be:
    a. $1,250
    b. $125
    c. $2,000
    d. $1,500
    Ans: c

    18.If break-even point in units is 2,000 units and fixed cost is $50,000, the contribution
    margin per unit will be:
    a. $25
    b. $4
    c. $0.04
    d. $250
    Ans: a

    19.Margin of safety = ?
    a. Actual or budgeted sales - Contribution margin
    b. Actual or budgeted sales - Gross margin
    c. Actual or budgeted sales - Fixed cost
    d. Actual or budgeted sales - Break even sales
    Ans: d

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