1.One useful equation used in CVP (Cost Volume Profit) analysis is

-Revenue per unit - variable cost = Contribution margin per unit

-Revenue per unit - Variable costs per unit = Fixed Cost Per unit

-Revenue per unit - Fixed Costs per unit = Variable Cost Per Unit

-All of the above can be effectively used

2.Alice is planning to open a sandwich shop. An estimate of her costs/revenues are as follows: Average sales price per sandwich: $12.75; yearly rent: $12,000; monthly fixed utility bill: $800; average costs of ingredients per sandwich: $3.35; monthly fixed labour bill: $10,500; miscellaneous fixed supplies: $1,000; miscellaneous variable supplies: $0.60 per sandwich. How many additional units does she need to sell per month to breakeven on advertising campaign costing $1,800 per month?

-193 units

-212 units

-210 units

-198 units

3.Over the past year, the company 'X' experienced the following: raised $10,000 by issuing new common shares; had a net income of $210,000; bought $610,000 of new equipment; had depreciation of $60,000; reduced inventories by $900,000; borrowed $120,000 from bank; sold old equipment for $750,000. For the year, company 'X' raised from financing activities the following amount of cash:

-$220,000

-$100,000

-$270,000

-$120,000

4.Alice is planning to open a sandwich shop. An estimate of her costs/revenues are as follows: Average sales price per sandwich: $12.75; yearly rent: $12,000; monthly fixed utility bill: $800; average costs of ingredients per sandwich: $3.35; monthly fixed labour bill: $10,500; miscellaneous fixed supplies: $1,000; miscellaneous variable supplies: $0.60 per sandwich. How many sandwiches does she need to sell per month to make an operating income of $61,000 per year?

-5.276 units

-2.138 units

-2.094 units

-8.640 units

5.Over the past year, the company 'X' experienced the following: raised $10,000 by issuing new common shares; had a net income of $210,000; bought $610,000 of new equipment; had depreciation of $60,000; reduced inventories by $900,000; borrowed $120,000 from bank; sold old equipment for $750,000. For the year, company 'X' raised from operating activities the following amount of cash

-$1,110,000

-$630,000

-$1,170,000

-$270,000