1. What is the variable cost if the sale price per unit is $40? a. $8.00 b....

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1. What is the variable cost if the sale price per unit is $40?
a. $8.00
b. $16.00
c. $24.00
d. $40.00

2. What is the degree of operating leverage if the sales volume is 2,000 units?
a. 16
b. 8
c. 4
d. 1

3. What are the sales needed to obtain earnings before tax of $6,000?
a. $ 60,000
b. $ 90,000
c. $120,000
d. $180,000

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Cost Management Measuring, Monitoring and Motivating Performance

ISBN: 978-1119185697

3rd Canadian edition

Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook

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