.Multiple choice questions:

1) Which of the following formulae is the right formula for calculating contribution margin ratio?

A) Contribution margin ratio = Contribution margin + Net sales revenue

B) Contribution margin ratio = Contribution margin ÷ Net sales revenue

C) Contribution margin ratio = Contribution margin × Net sales revenue

D) Contribution margin ratio = Contribution margin - Net sales revenue

2) One of the assumptions of cost-volume-profit (CVP) analysis is that there are no changes in the:

A) Accounts payable.

B) Cash balance.

C) Inventory levels.

D) Accounts receivables.

3) ________ is a "what if" technique that estimates profit or loss results if selling price, costs, volume, or underlying assumptions change.

A) High-low method of analysis

B) Sensitivity analysis

C) Contribution margin

D) Operating leverage

4) When the total fixed costs increases, the contribution margin per unit:

A) Increases.

B) Decreases.

C) Increases proportionately.

D) Remains the same.

5) When the total fixed costs increases, the breakeven point:

A) Increases.

B) Decreases.

C) Decreases proportionately.

D) Remains the same.