1) The contribution margin ratio is the percent of each sales dollar that remains after deducting the total unit variable cost.

True or False

2)

The accounting rate of return is calculated as:

Multiple Choice

• The after-tax income divided by the annual average investment.

• The annual average investment divided by the after-tax income.

• The after-tax income divided by the total investment.

• The cash flows divided by the total investment.

• The cash flows divided by the annual average investment.

3) Blanchard Company manufactures a single product that sells for $145 per unit and whose total variable costs are $116 per unit. The companys annual fixed costs are $461,100.

(a) Compute the company's contribution margin per unit.
	Contribution margin per unit		$29	per unit
Less:	Sales per unit		145	per unit
	Contribution margin
(b) Compute the company's contribution margin ratio.
	Choose Numerator:	/	Choose Denominator:		=	Contribution Margin Ratio
		/			=	Contribution margin ratio
						0
(c) Compute the company's break-even point in units.
	Choose Numerator:	/	Choose Denominator:		=	Break-Even Units
		/			=	Break-even units
						0
(d) Compute the company's break-even point in dollars of sales.
	Choose Numerator:	/	Choose Denominator:		=	Break-Even Dollars
		/			=	Break-even dollars
						0