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Cost Volume Profit Analysis

Practice MCQs under Cost Volume Profit Analysis. 43 available Open paginated MCQ list →

Questions

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1.At what level of production does the total revenue exactly cover the total costs, resulting in neither profit nor loss?

2.Given a selling price of $2000 and a contribution margin per unit of $800, what is the contribution margin percentage?

3.Given that the contribution margin per unit is $500 and the contribution margin ratio is 25%, what is the selling price per unit?

4.Within the relevant range, how are the variable cost per unit, selling price, and total fixed costs characterized?

5.Given a fixed cost of $40,000 and a contribution margin of $800 per unit, how many units must be sold to break even?

6.Given a fixed cost of $30,000 and a contribution margin of $600 per unit, how many units must be sold to break even?

7.What is the contribution margin per unit if the contribution margin ratio is 20% and the unit selling price is $4000?

8.What do you get when you multiply the selling price by the number of units sold?

9.What do you obtain when you divide the contribution margin per unit by the selling price?

10.In manufacturing firms, which of the following is considered a driver of both revenue and costs?

11.Given a fixed cost of $50,000 and a contribution margin ratio of 20%, what is the breakeven sales revenue?

12.To determine the selling price, the contribution margin per unit is divided by which of the following?

13.What is obtained by dividing fixed costs by the contribution margin?

14.What do you get when you divide the contribution margin per unit by the product's selling price?

15.Given that the contribution margin per unit is $800 and the selling price per unit is $20,000, what is the contribution margin ratio expressed as a percentage?

16.What term describes the difference between the selling price of a product and its variable cost per unit?

17.What is the total variable cost if each unit costs $25 to produce and 5,000 units are sold?

18.Given that the break-even sales volume is 120 units and the total fixed costs amount to $62,000, what is the contribution margin per unit?

19.Given that the contribution margin per unit is $1,000 and the contribution margin ratio is 25%, what is the selling price per unit?

20.Given that total revenue amounts to $10,000 and total variable costs are $4,000, what is the contribution margin?

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