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Match the following terms to the appropriate statement by placing the letter to the left of each statement. a. Breakeven graph f. Markup b. Breakeven

Match the following terms to the appropriate statement by placing the letter to the left of each statement.

a.

Breakeven graph

f.

Markup

b.

Breakeven point

g.

Margin of safety

c.

Cost-plus pricing

h.

Operating leverage

d.

Cost-volume-profit analysis

i.

Sales mix

e.

Degree of operating leverage

j.

Target costing

____

  1. Sales revenue is exactly equal to total costs, and there is no profit or loss.

____

  1. The difference between current sales and breakeven sales.

____

  1. Analysis that helps managers assess the impact of various business decisions on company profits.

____

  1. The change in operating income relative to a change in sales.

____

  1. The sales of each product relative to total sales

____

  1. Adds an amount to the cost of the product or service to cover the companys operating costs and contribute to its profit.

____

  1. Computes the desired markup and the maximum cost the company can incur to deliver a product or service at the market price.

____

  1. Illustrates the relationship between sales and costs, allowing managers to view a range of results in a single glance.

____

  1. The difference between the selling price and the cost of the product.

____

  1. A way to compute the expected change in operating income due to a change in sales volume at a given level of sales.

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