Homework answers / question archive / Question 1 2 / 2 pts The amount of a unit’s sales price that helps to cover fixed expenses is its ________

Question 1 2 / 2 pts The amount of a unit’s sales price that helps to cover fixed expenses is its ________

Accounting

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Question 1

2 / 2 pts

The amount of a unit’s sales price that helps to cover fixed expenses is its ________.

  

variable cost

   

contribution margin

   

stepped cost

   

profit

 

 

Question 2

2 / 2 pts

A company’s product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit?

  

$150

   

$40

   

$60

   

$90

 

Question 3

2 / 2 pts

A company’s product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin ratio?

  

10%

   

40%

  

60%

  

90%

 

 

Question 4

2 / 2 pts

A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit?

  

$50

  

$30

   

$110

   

$80

 

 

Question 5

2 / 2 pts

If a company has fixed costs of $6,000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even?

  

2,000

   

100

 

200

   

180

 

 

Question 6

2 / 2 pts

Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income?

  

120

   

60

  

20

   

40

 

 

Question 7

2 / 2 pts

When sales price increases and all other variables are held constant, the break-even point will ________.

  

produce a lower contribution margin

   

remain unchanged

   

decrease

   

increase

 

 

IncorrectQuestion 8

0 / 2 pts

When variable costs increase and all other variables remain unchanged, the break-even point will ________.

  

produce a lower contribution margin

   

increase

   

decrease

   

remain unchanged

 

 

Question 9

2 / 2 pts

When fixed costs decrease and all other variables remain unchanged, the break-even point will ________.

  

remained unchanged

  

increase

  

produce a lower contribution margin

  

decrease

 

 

Question 10

2 / 2 pts

If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of operating leverage?

  

2.4

  

1.18

  

0.18

  

4.7