41. Contribution margin may be expressed as:
A. A percentage of revenue.
B. A total dollar amount for the period.
C. A contribution margin per unit.
D. All of the above.
42. The dollar amount by which sales can decline before an operating loss is incurred is called the:
A. Contribution margin.
B. Contribution margin ratio.
C. Margin of safety.
D. Relevant range.
43. If a product sells for $8, variable costs are $6 and fixed costs are $150,000 what would total sales have to be in order to break-even?
A. $390,000.
B. $399,999.
C. $600,000.
D. $699,999.
44. Variable costs would include:
A. Rent expense.
B. Depreciation expense.
C. Sales commission expense.
D. Executive salaries expense.
45. Fixed costs:
A. Fall as sales volume falls.
B. Rise as sales volume rises.
C. Rise as sales volume falls.
D. Remain steady when sales volume changes.
46. If unit sales prices are $7 and variable costs are $5 per unit how many units would have to be sold to break-even if fixed costs equal $8,000?
A. 2,000
B. 3,000
C. 4,000
D. 3,800
47. If the unit sales price is $7 and variable costs are $3, how many units have to be sold to earn a profit of $3,600 if fixed costs equal $5,000?
A. 900
B. 1,250
C. 1,500
D. 2,150
48. If the unit sales price is $12, variable costs are $6 per unit and fixed costs are $26,000 what is the contribution ratio per unit?
A. 40%
B. 50%
C. 60%
D. 70%
49. If the unit sales price is $12, variable costs are $6 per unit and fixed costs are $36,000 what are the sales in dollars necessary to break-even?
A. $90,000
B. $72,000
C. $70,000
D. $60,000
50. If the unit sales price is $14, variable costs are $7 per unit and fixed costs are $42,000, how many units must be sold to earn an income of $250,000?
A. 52,142
B. 41,715
C. 34,762
D. 29,796