A company has full fixed expenses of $180,000 and a contribution margin ratio of 20%. The full sales important to break even are: A. $720,000 B. $900,000 C. $225,000 D. $216,000


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A price which remains consistent per unit at assorted levels of task is a A. Variable expense B. Fixed price C. Mixed price D. Manufacturing cost
The relevant selection of activity refers to the A. Geographical areas where the company plans to operate B. The task level whereby all costs are curvilinear C. Levels of activity over which the company expects to run D. Level of activity where all prices are constant
A combined cost has A. A variable element and also a fixed facet B. Both selling and also administrative expenses C. Both retailing and manufacturing prices D. Both operating and also non-operating costs
Which the the following is not an underlying assumption of CVP evaluation A. Transforms in activity are the only determinants that affect costs B. Cost classifications space reasonably exact C. Beginning inventory is bigger than finishing inventory D. Sales mix is constant
Which of the adhering to is a false statement concerning assumptions the CVP analysis? A. Total fixed costs remain consistent over the relevant variety B. Unit offering prices are constant C. Alters in volume or level of task increase variable expenses per unit D. All units produced are sold
Mixed costs may it is in separated into fixed costs and also variable expenses by utilizing A. The variable costing method B. The high-low technique C. The donation margin technique D. Every one of the above
If the unit offering price is $500, the unit varialbe expense is $300 and also the total monthly costs are $300,000, climate the donation margin proportion is A. 30% B. 40% C. 50% D. 60%
if task level increases 25% and a specific cost rises from $40,000 come $50,000, this cost would it is in classified as a A. Variable cost B. Mixed expense C. Fixed expense D. None of the above
If total fixed expenses are $900,000 and variable prices as a percentage of unit offering price space 40%, the break-even allude in dollars is A. $1,500,000 B. $360,000 C. $2,250,000 D. No determinable through the information given
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