Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
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 ________.
variable cost
contribution margin
stepped cost
profit
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
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%
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
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
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
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
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
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
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
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
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
Sales - VC = CM
$150 - $60 = $90
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%
CM / Sales = CM Ratio
($150 - $60) / $150 = 60%
90%
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
Sales - VC = CM
$80 - $30 = $50
$30
$110
$80
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
1) B/E in units = Fixed costs / CM per unit
2) CM per unit = Sales * CM Ratio
2) $200 * 30% = $60
1) $6,000 / $60 = 100 units
200
180
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
Target Profit in units = Fixed Costs + Target Profit / CM per unit
($10,000 + $5,000) / $250 = 60 units
20
40
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
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
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
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
Operating Leverage = CM / Net Income
$59,690 / $12,700 = 4.7
