1. The CVP formula will usually give an answer more accurate than an answer from a multi-point graph.

A. True

B. False

2. Fixed costs are 90,000 dollars, profit required is 10,000 dollars, and variable costs are 40 %. Sales revenue will have to be (to nearest 1,000 dollars):

A. $329,000

B. $150,000

C. $167,000

D. $225,000

3. The CVP formula cannot be used to help make decisions if a business is currently in a loss position.

A. True

B. False

4. CVP analysis assumes that costs have been fairly accurately broken down into their fixed and variable elements

A. True

B. False