Which of the following does not represent a cost-volume-profit analysis equation? a. Sales = total expenses + profit b. Contribution margin- fixed expenses-profit=0 oc. Profit = contribution margin + fixed expenses d. Sales + fixed expenses + profit - contribution margin + sales e Sales - fixed expenses - variable expenses = 0 When performing sales mix analysis, which one of the following is false: a. Shifting the sales mix to the product with a lower contribution margin will likely ncrease the overall contribution margin b. Making changes to the sales mix will likely cause a change in the breakeven point c. Normally the calculation of the breakeven point for multiproduct is more complicated than that for a single product. d. The sales mix is usually assumed to be remain the same. e. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point Company XYZ is producing and selling 2,500. At this level, the selling price per unit is $10, the variable expenses per unit is $5, and fixed expenses are $1,500. How much is the profit? a. $11,000 b. $6,000 c. $8,500 d. $13,500 e. $16,000 Company XYZ is specialized in producing and selling smartwatches. The company currently has two products and is planning to improve it profits in the coming years. The company is thinking of introducing a sales commission to encourage its sales people to make more sales and improve company's profitability. When designing the sales commission the company should base the sales commission on: a. The number of employees b. The selling price C. The contribution margin d. The color of the product e. None of the given answers Company XYZ has three products A, B and C. The sales mix for products A, B and Care 8, 6 and 5 units respectively. The contribution margin per unit for products A, B and C are $900, $600 and $400 respectively. Assuming that the fixed costs were $4,544,000. What is the breakeven point in units (in total) (rounded to the nearest number) a. 1.641 b. 3,335 c. 6,745 O d. 800 e None of the given answers Which of the following statements about margin of safety is false? a. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety decreases. b. If only the fixed costs decrease but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety increases. c. Margin of safety measures the difference between budgeted revenues and breakeven revenues. d. If the variable cost per unit decreases but the number of units sold, unlt selling price and total fixed cost are all constant, the margin of safety decreases. e none of the given answers is false. Which of the following statements related to CVP chart is not true? a. The intercept between the total cost line on a graph and the y axis determines the fixed cost. b. To determine the variable cost per unit from a graph, the change in cost is divided by the change in units. c. The slope of the total cost line determines the fixed cost per unit. d. To calculate the total fixed cost from a graph is by multiplying a level of volume by the variable cost per unit found out earlier and subtracting that from the total cost for that level of volume. e. The high-low method is a way to estimate the cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. of. None of the given answers. Holding other factors constant, a company's contribution margin per unit will increase with: a. All answers given are NOT correct. b. any decrease in the selling price per unit c. increase in its total fixed costs d. any increase in variable cost per unit e. any increase in quantity sold. If Mazoon Company sells unit outputs below the breakeven point_ a. there will be an decrease in total fixed costs b. total sales revenue will be less than total variable costs c total sales revenue will be less than total fixed costs d. None of the given answers e there will be a loss Company XYZ produces and sells 40,000 units.at this level, the company is making a profit of $19,000. Assuming total fixed expenses of $1,000 and variable expenses per unit of $0.5, how much was the selling price per unit? a. 1 b. 3 c. 4 d. B
