95.On a cost-volume-profit graph, the total revenue line lies below the total cost line to the left of the break-even point.
True False
96.On a cost-volume-profit graph, the total revenue line begins at the break-even point and slopes upward to the right.
True False
97.Ecco Company has total fixed costs of $5,000, sells a product whose contribution margin is $50 and selling price per unit is $125, and has current sales of $15,000. The company's margin of safety ratio is 20%.
True False
98.A margin of safety of 30% means that every dollar in revenue generates thirty cents in profit.
True False
99.Sensitivity analysis is performed in order to determine optimal sales mix.
True False
100.Sensitivity analysis acknowledges that profitability is often affected by multidimensional forces.
True False
101.For a company that sells several products, different sales mixes generally give rise to different break-even sales levels, even if overall sales volume remains unchanged.
True False
102.To find the break-even point for a company that sells several products, the analyst must make an assumption about what the sales mix will be and calculate a weighted average contribution margin based on that sales mix.
True False
103.For a company that sells several products, cost-volume-profit techniques cannot be used to calculate the sales volume required to yield a target level of profit.
True False