break even analysis

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Break even point is used to compute number of units must be sold to recover

Break even point is used to compute number of units must be sold to recover
  • A. fixed cost
  • B. variable cost
  • C. variable margin
  • D. fixed margin
  • Correct Answer: Option A

Fixed cost is $25,000 USD and contribution to profit and fixed cost is $100 USD then break even point is

Fixed cost is $25,000 USD and contribution to profit and fixed cost is $100 USD then break even point is
  • A. 250 units
  • B. 200 units
  • C. 100 units
  • D. 150 units
  • Correct Answer: Option A

In procedure of plotting break even point, break even point is identified by

In procedure of plotting break even point, break even point is identified by
  • A. x-coordinate of y-intercept
  • B. x-coordinate of x-intercept
  • C. y-coordinate of y-intercept
  • D. y-coordinate of x-intercept
  • Correct Answer: Option B

Profit margin is positive if

Profit margin is positive if
  • A. fixed cost is zero
  • B. profit contribution > fixed costs
  • C. profit contribution = fixed costs
  • D. profit contribution < fixed costs
  • Correct Answer: Option B

Difference between per unit price and variable cost of each unit is called

Difference between per unit price and variable cost of each unit is called
  • A. revenue margin
  • B. price margin
  • C. cost margin
  • D. profit margin
  • Correct Answer: Option D