CH7 Accounting

The unit contribution margin is computed by:

The contribution margin ratio explains the percentage of each sales dollar that contributes towards:

CVP analysis assumes all of the following EXCEPT that:

To compute the unit contribution margin, ________ should be subtracted from the sales price per unit.

Managers can quickly forecast the operating income by multiplying ________ and then subtracting fixed costs.

Managers can quickly forecast the total contribution margin by multiplying the projected:

Which of the following represents the excess of the selling price per unit of a product over the variable cost of obtaining and selling each unit?

Contribution margin ratio is computed by dividing:

On a contribution margin income statement, to what is contribution margin equal?

The contribution margin ratio is computed by:

The formula used to find the number of units that need to be sold in order to breakeven or generate a target profit is:

The formula used to find the sales revenue (sales in dollars) needed in order to breakeven or generate a target profit is:

To find the breakeven point using the shortcut formulas, you use zero for the:

The formula used to find the sales revenue (sales in dollars) needed in order to breakeven or generate a target profit is:

The formula used to find the number of units that need to be sold in order to breakeven or generate a target profit is:

Which of the following is TRUE when using the income statement approach to finding breakeven?

On a CVP graph, the total cost line intersects the total revenue line at which of the following points?

Which of the following is NOT an approach used to calculate the breakeven point?

The breakeven point may be defined as the number of units a company must sell to do which of the following?

Sales below the breakeven point indicate a ________, whereas sales above the breakeven point indicate a ________.

On a CVP graph, the horizontal line intersecting the vertical y-axis at the level of total cost represents:

On a CVP graph, the line that begins at the origin represents:

On a CVP graph, the intersection of the sales revenue line and the variable expense line is known as:

Which of the following is an underlying assumption of the cost-volume-profit graph?

The area to the right of the break-even point and between the total revenue line and total expense line represents:

The Sweet Factory produces and sells specialty fudge. The selling price per pound is $20, variable costs are $12 per pound, and total fixed costs are $6,000. How many pounds of fudge must The Sweet Factory sell to breakeven?

Which of the following statements is TRUE if the sales price per unit increases while the variable cost per unit and total fixed costs remain constant?

Which of the following statements is TRUE if the variable cost per unit decreases while the sales price per unit and total fixed costs remain constant?

Which of the following statements is TRUE if the fixed costs increase while the sales price per unit and variable costs per unit remain constant?

If the sale price per unit decreases and variable costs remain the same, what will be the effect on the contribution margin ratio?

Which of the following statements is TRUE if the variable cost per unit increases while the sale price per unit and total fixed costs remain constant?

Which of the following statements is TRUE if total fixed costs decrease while the sale price per unit and variable costs per unit remain constant?

Which of the following statements is TRUE if both fixed expenses and the sale price per unit increase while variable costs per unit are unchanged?

Which of the following will decrease the breakeven point in units assuming no other changes in the cost-volume-profit relationship?

After break-even on a CVP graph, the difference between sales dollars and total costs is the representation of: