1.

The break-even point is the point at which

revenue exceeds variable cost but does not fully cover fixed cost.

revenue exceeds fixed cost but does not fully cover variable cost.

revenue exceeds the total of fixed plus variable cost.

revenue is equal to the total of fixed plus variable costs.

2.

Green Manufacturing Company produces a product that has a variable cost of $30 per unit. Fixed costs amount to $240,000. The selling price of the product is $36. The contribution margin per unit is:

$66.

$36.

$30.

none of the above.

3.

1. The breakeven point is the point at which revenue exceeds variable cost but does not fully cover fixed cost. revenue exceeds fixed cost but does not fully cover variable cost. revenue exceeds the total of fixed plus variable cost. revenue is equal to the total of fixed plus variable costs. 2. Green Manufacturing Company produces a product that has a variable cost of $30 per unit. Fixed costs amount to $240,000. The selling price of the product is $36. The contribution margin per unit is: $66. $36. $30. none of the above. 3. All other things being equal, if Calpo Company increases its sales price per unit, the number of units necessary to reach the breakeven point will increase. decrease. remain constant. The answer cannot be provided from the information provided. 3B. Calpo Co. buys and sells a product that has a variable cost per unit of $18. Calpo's fixed costs amount to $48,000. The product sells for $22 each. As a result of competition Calpo has been forced to establish a target sales price of $21 per unit. If Calpo implements the pricing strategy, the breakeven point will increase by $16,000. decrease by $72,000. decrease from 16,000 units to 12,000. increase from 12,000 units to 16,000. 4. Which of the following is normally not included in a breakeven graph? A fixed cost line. A variable cost line. A total cost line. A total revenue line. 5. On a graph the breakeven point is located at the point where the total revenue line crosses the fixed cost line. at the intercept of the variable cost line. at the slope of the fixed cost line. where total revenue line crosses the total cost line. 6. The margin of safety is a measure of the distance between budgeted sales and the breakeven point. It can be measured in dollars, in units or as a percentage. These statements are true. These statements are false. Statement one is true and statement two is false. Statement one is false and statement two is true