Break even analysis is a special case of CVP where the Profit at some level of sales is $0.

Question 1 options:

	True
	False

Question 2 (1 point)

Contribution margin is defined as the difference between Total Sales and Fixed Costs.

Question 2 options:

	True
	False

Question 3 (2 points)

Consider the following: Sales Price is $5 per unit. Variable costs are $3 per unit. Fixed Costs are $200. What is the Break-even point in units?

Question 3 options:

	40 units
	67 units
	100 units
	Cannot be determined

Question 4 (1 point)

Consider the following: Sales Price is $5 per unit. Variable costs are $3 per unit. Fixed Costs are $200. What is the Contribution margin per unit?

Question 4 options:

	$2 per unit
	$3 per unit
	$5 per unit
	Cannot be determined