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The break-even point in unit sales is found by dividing total fixed expenses by: A. the contribution margin ratio. B. the variable expenses per unit.
The break-even point in unit sales is found by dividing total fixed expenses by: A. the contribution margin ratio. B. the variable expenses per unit. C. the sales price per unit. D. the contribution margin per unit. The break-even point in unit sales increases when variable expenses: A. increase and the selling price remains unchanged. B. decrease and the selling price remains unchanged. C. decrease and the selling price increases. D. remain unchanged and the selling price increases. The margin of safety percentage is computed as: A. Break-even sales + Total sales. B. total sales - Break-even sales. C. (Total sales - Break-even sales) + Break-even sales. D. (Total sales - Break-even sales) + Total sales. The amount by which a company's sales can decline before losses are incurred is called the: A. contribution margin. B. degree of operating leverage. C. margin of safety. D. contribution margin ratio. The degree of operating leverage can be calculated as: A. contribution margin divided by sales. B. gross margin divided by net operating income. C. net operating income divided by sales. D. contribution margin divided by net operating income. Menlove Company had the following income for the most recent year. Given this data, the unit contribution margin was: A. $2 per unit B. $15 per unit C. $6 per unit D. $4 per unit Mancuso Corporation has provided its contribution format income statement for January. The company produces and sells a single product. If the company sells 3, 100 units, its total contribution margin should be closest to: A. $27,045 B. $181,000 C. $162, 400 D. $173, 600
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