1. When using either the equation or the contribution margin approach, the after-tax profit must be converted to a before-tax profit target.
   1. True
   2. False

2. Multiple-product break-even analysis requires a constant sales mix, which is difficult to predict with certainty.
   1. True
   2. False

Multiple Choice Problems (Each question is worth 2 points)

3. Sales Contribution Margin is a short-cut of what formula?
   1. Sales (Variable cost ratio Sales)
   2. Sales (Fixed Costs + Variable Costs)
   3. Sales / Fixed Costs
   4. Fixed Costs / Unit Contribution Margin