Question
1. The CVP formula will usually give an answer more accurate than an answer from a multi-point graph. A. True B. False 2. Fixed costs
1. The CVP formula will usually give an answer more accurate than an answer from a multi-point graph.
A. True
B. False
2. Fixed costs are 90,000 dollars, profit required is 10,000 dollars, and variable costs are 40 %. Sales revenue will have to be (to nearest 1,000 dollars):
A. $329,000
B. $150,000
C. $167,000
D. $225,000
3. The CVP formula cannot be used to help make decisions if a business is currently in a loss position.
A. True
B. False
4. CVP analysis assumes that costs have been fairly accurately broken down into their fixed and variable elements
A. True
B. False
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