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Cost Volume Profit Analysis
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Cost Volume Profit Analysis – MCQs
43 questions. Click to practice.
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Correct options are highlighted when revealed.
1.
What is obtained when the fixed costs are divided by the contribution margin per unit?
constant production quantity
variable production quantity
break-even quantity of units
overall units produced
2.
Given a contribution margin ratio of 30% and a selling price of $5,000, what is the contribution margin amount for each unit?
$900
$1,200
$1,500
$1,600
$1,800
3.
Given a contribution margin of $13,000 and total variable costs amounting to $7,000, what is the total revenue?
$6,000
-$6,000
$20,000
-$20,000
4.
Given a selling price of $5000 and a contribution margin per unit of $1000, what is the contribution margin percentage?
12 percent
20 percent
5 percent
15 percent
10 percent
5.
Given a revenue of $15,000, variable costs totaling $5,000, and fixed costs amounting to $2,000, what is the operating income?
$4,000
$8,000
$5,000
$3,000
6.
Given that the total revenue amounts to $9,000 and the total variable costs are $2,000, what is the contribution margin?
$11,000
-$7,000
$4,500
$7,000
7.
Given a contribution margin of $12,000 and total variable costs amounting to $7,000, what is the total revenue?
$19,000
-$5,000
$5,000
-$19,000
None of the above
8.
Given a fixed cost of $30,000 and a contribution margin ratio of 40%, what is the breakeven sales revenue?
$120,000
$75,000
$12,000
$175,000
$90,000
9.
What do you get when you multiply the variable cost per unit by the number of units sold?
cost per item
total variable cost
fixed expenses
combined cost
unit price
10.
What is obtained by multiplying the contribution margin per unit by the total units sold?
sales margin
variable profit
total contribution margin
divisor profit
gross margin
11.
Given that the variable expenses amount to $50,000 and the fixed expenses total $30,000, what is the resulting operating income?
$80,000
$160,000
$16,000
$20,000
12.
If each unit contributes $1,200 and 80 units are sold, what is the total contribution margin?
$9,650
$96,000
$15
$9,600
13.
What is the total revenue generated if 800 units are sold at a price of $20 each?
$16,000
$40,000
$25,000
$35,700
14.
What do you get when you subtract total variable costs from total revenues?
sales margin
variable profit
contribution margin
divisor margin
gross margin
15.
Given a fixed cost of $80,000 and a break-even sales volume of 200 units, what is the contribution margin earned per unit?
$400
$600
$800
$1,000
16.
Given a contribution margin of $40 per unit and a selling price of $200 per unit, what is the contribution margin percentage?
20%
10%
22%
16%
18%
17.
Given a total contribution margin of $15,000 and sales of 500 units, what is the contribution margin earned on each unit?
$20 for each unit
$30 for each unit
$50 per sold unit
$40 per unit
Cannot be determined
18.
Which financial metric is determined by deducting variable costs from fixed costs?
income per unit
fixed earnings
operating income
contribution margin
net profit
19.
What is the value of operating income at the break-even point?
$3,000
$2,000
$1,000
Zero
20.
Given that the contribution margin per unit is $700 and the break-even sales volume is 40 units, what is the total fixed cost?
$35,000
$28,000
$17,500
$82,000
None of the above
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