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Financial Ratios Analysis – MCQs

49 questions. Click to practice.

Correct options are highlighted when revealed.

1.Given that the cost of goods sold amounts to $8,000 and the gross profit is $5,000, what is the total revenue?

2.Given a fixed cost of $10,000, a desired operating income of $8,000, and a contribution margin of $900 per unit, how many units must be sold to meet the target?

3.If the fixed costs amount to $25,000 and the breakeven sales revenue is $95,000, what is the contribution margin percentage?

4.Given a fixed cost of $15,000 and a breakeven sales revenue of $45,000, what is the contribution margin percentage?

5.What is obtained by dividing the gross margin by total revenues?

6.To determine the __________, the gross margin is combined with the cost of goods sold.

7.What term describes the difference between total sales and the breakeven sales amount?

8.Given a budgeted revenue of $20,000 and a breakeven revenue of $15,000, what is the margin of safety?

9.Given the quantities of products A, B, and C as 200, 300, and 400 units respectively, what is the total sales volume?