1)

The Contribution Margin can be expressed as

a.sales less cost of goods sold.

b.sales less variable cost of goods sold and variable period expenses.

c.sales less variable production costs.

d.sales less variable and fixed costs.

e.gross profit.

2)

The total Contribution Margin decreases if sales volume remains the same and

a.fixed expenses increase.

b.

variable cost or expense per unit increases.

c.

fixed expenses decrease.

d.variable cost or expense per unit decreases.

e.None of the above.

3) If a company increases its product's selling price by $2.00 because labor costs increased by $2.00, the breakeven point in units will

a.

remain unchanged

b.

increase.

c.

decrease.

d. be unknown unless the volume sold is known.

4) A company has fixed costs of $900. Unit variable costs are $50 and the product sells for $80. What is the Contribution Margin Ratio?

a.14.4%

b.

20%

c.30%

d.

37.5%

e.62.5%

5) A company has fixed costs of $6720. Sales price is $76 per unit variable costs are $48. What is the breakeven point in dollars?

		a.$240.00
b.		$2475.79
c.		$4244.21
	d.	$18,240.00
	e.	$188,160.00

6)

Sales	$360
Var Costs	240
CM	$120
Fixed Costs	85
NOI	$ 35

If sales volume increased 10% due to infrastructure upgrades that increased fixed costs by 5%, what would the effect be on Net Operating Income?

Increase of 5%

Decrease of 5%

Increase of $5.00

Increase of $7.75

Increase of $31.75

7)

Sales (36 items sold at $10 each)	$360
Var Costs	280
CM	$ 80
Fixed Costs	95
NOL	$ 15

If the target Net Operating Income is $10, how many additional units must be sold?

11.25 units, assuming partial units may be sold

12.25 units, assuming partial units may be sold

22.875 units, assuming partial units may be sold

47.25 units, assuming partial units may be sold

52.75 units, assuming partial units may be sold

8)

Sales	$160
Var Costs	100
CM	$ 60
Fixed Costs	70
NOL	$ 10

What are the additional sales dollars needed to break even?

$6.67

$12.67

$16.67

$26.67

$43.33

9)

A company produces and sells two products.

	Product 1	Product 2
Sales	$170	$190
Variable Expenses	70	90

Fixed expenses are $1,500. If the sales mix were to shift toward Product 1 with overall sales remaining constant, the overall breakeven point for the company would

remain the same.

increase.

decrease.

either increase or decrease.

10)

A company has Segment A and Segment B.

Sales for A = $100 Sales for B = $120 Variable Expenses for A = $80 Variable Expenses for B = $90 Fixed Expenses for the entire company are $50, of which $5 can be traced to A and $7 can be traced to B.

What is teh Segment Margin in dollars and % terms for both A and B?

		Segment A = $20, 20%; Segment B = $30, 25%
		Segment A = $5, 5%; Segment B = $7, 5.8%
		Segment A = $15, 15%; Segment B = $23, 19.2%
		Segment A = $15, 15%; Segment B = $19, 19%
		cannot be determined.