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10. In the aea of cost-wolume-profit analysis, the contribution margin ratio shows how much each dollar of sales contributes to: A) Covering the fixed costs
10. In the aea of cost-wolume-profit analysis, the contribution margin ratio shows how much each dollar of sales contributes to: A) Covering the fixed costs of the business and providing operating income. B) Fixed expenses and variable expenses. C) Variable expenses and interest charges. D) Variable expenses when production is at normal capacity. 11. All other things held constant, how will an increase in selling price affect the break-even point measured in units? A) The break-even point will increase. B) The break-even point will decrease C) The break-even point will remain constant. D) The effect on the break-even point can't be predicted with certainty 12. A company's most profitable products are often those which: A) Have the highest contribution margin ratios and the highest sales volumes. B) Have the highest contribution margin ratios and the lowest sales volumes. C) Have the lowest contribution margin ratios and the highest sales volumes. D) Have the lowest contribution margin ratios and the lowest sales volumes. 13. A fixed cost may include all of the following, except A) Rent for the warehouse B) Annual salary of the CEO C) Depreciation D) Sales commission expense
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