Which of the following is not an assumption of CVP: Multiple Choice A straight line can be used to approximate the relationship between total costs and sales. All costs can be classified as either variable or fixed. Costs must be mixed. Production and sales are equal. Only sales volume affects total costs and revenue. Knowledge Check 02 Which of the following statements will be true, assuming that the per-unit variable costs decrease by $2, and all other variables remain constant? O Sales revenue will increase by $60,000 O Variable costs as a percentage of sales will increase by 13.33 percentage points Net operating income will decrease by $60,000 Contribution margin ratio will increase by 13.33 percentage points Match each definition with its related term by selecting the appropriate term in the dropdown provided. Not all definitions will be used. (Select "None of these are correct" if there is no term for the "Definition".) a. Term None of these are correct Sales mix b. C Cost-volume-profit analysis d. Target profit analysis e. Break-even analysis f. Definition The proportion of products based upon the number of units sold. The proportion of products sold based on total sales revenue Analysis that focuses on relationships among revenue, volume, mix of units sold, variable and fixed costs. Analysis that focuses on determining the number of units or sales revenue required to generate a desired net income. Analysis that focuses on determining the number of units or sales revenue required to generate a zero profit. Analysis to determine if changing underlying assumptions would affect the decision Contribution margin = Fixed costs. Analysis that expresses each line of the income statement as a percentage of total sales. Average unit contribution of multiple products weighted by the percentage of units sold. Average contribution margin ratio of multiple products weighted by the percentage of total sales revenue. Actual (or budgeted) sales plus break-even sales. The extent to which fixed costs are used to operate a business The extent to which variable costs are used to operate a business Difference between actual or budgeted sales and the break-even point. g None of these are correct Break-even point None of these are correct None of these are correct h i. J- k. X I. Weighted average contribution margin ratio Margin of safety Degree of operating leverage None of these are correct None of these are correct m. n. x Juniper Enterprises sells handmade clocks. Its variable cost per clock is $12.80, and each clock sells for $32. Calculate Juniper's contribution margin per unit and contribution margin ratio. If the company's fixed costs total $14,016, determine how many clocks Juniper must sell to break even. Complete this question by entering your answers in the tabs below. Contribution Break Even Margin Point Calculate Juniper's contribution margin per unit and contribution margin ratio. (Round your "Unit Contribution Margin" answer to 2 decimal places.) Unit contribution margin Contribution margin ratio $ 32.00 60 % Contribution Margin Break Even Point >
