47-50

1. A cost-volume-profit (CVP) graph contains three lines. Which of the following is not explicitly depicted by one of those three lines?

Multiple Choice

• Total contribution margin

• Total sales

• Total expenses

• Total fixed expenses

2. In a cost-volume-profit (CVP) graph, the intersection of the total sales line and the total expense line represents which of the following?

Multiple Choice

• The total fixed expenses

• The break-even point

• The total variable expenses

• The total contribution margin

3. The contribution margin ratio equals:

Multiple Choice

• Sales contribution margin.

• Sales variable expenses.

• Contribution margin sales.

• Contribution margin variable expenses.

• 4. Which of the following statements is false?

  Multiple Choice

• The break-even point is the level of sales at which the total sales dollar amount equals the total fixed costs.

• Operating leverage is a measure of how sensitive net operating income is to a given percentage change in dollar sales.

• Margin of safety is the excess of budgeted or actual dollar sales over the break-even dollar sales.

• Sales mix refers to the relative proportions in which a company's products are sold.