Which of the following statements in relation to cost-volume-profit (CVP) analysis is correct?

Group of answer choices

a- Within the relevant range, fixed costs remain constant

b- Within the relevant range, the contribution margin remains constant

c- Within the relevant range, sales revenue remains constant

d- All of these statements are correct

e- Within the relevant range, variable costs remain constant

1.2 Which of the following explains why profit does not change proportionately with volume?

a- Contribution margin per unit

b- Fixed costs

c- Variable costs

d- Selling prices

e- The sales mix

1.3

Mentha Ltd sells it goods at a 100% mark-up. A review of the variance report reveals the following:

* Sales revenue variance of 10% unfavourable

* Cost of sales variance of 5% favourable

Which of the following statements is correct?

a- The actual mark-up % was more than forecast and management will be pleased with the cost of sales variance

b- The actual mark-up % was more than forecast and management will be disappointed with the cost of sales variance

c- The actual mark-up % was less than forecast and management will be pleased with the cost of sales variance

d- The actual mark-up % was less than forecast and management will be disappointed with the cost of sales variance

e- The actual mark-up % was exactly as forecast

Answer rating: 100% (QA)

11 d All of these statements are correct The relevant range is the range of activity over ... View the full answer