1 Which of the following is true at breakeven point? a) Sales revenue = variable cost...
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1 Which of the following is true at breakeven point? a) Sales revenue = variable cost b) Profit fixed cost + variable cost c) Sales revenue total cost-variable cost d) Contribution fixed cost 2 The margin of safety may be defined as: a) Difference between sales and breakeven point sales b) Extent to which sales revenue exceeds fixed costs c) Excess of planned sales over actual sales d) Point at which breakeven point sales are achieved 3 A company has fixed costs of GHS40,000. The selling price is GHS12.50 with a variable cost of GHS7.50 per unit. The breakeven point in units is a) 3,200 b) 8,000 c) 5,333 d) 2,000 4 A firm has a selling price of GHS12.95 per unit with an average variable cost of GHSS.44. Fixed costs are GHS140,000. The variable cost percentage is a) 42% b) 40% c) 24% d) 30% 5 A has a contribution to sales ratio of 40%. Fixed costs amount to GHS90,000. The units required to break even is a) 3,000 b) 4,500 c) 225,000 d) impossible to calculate without further information 6 Sales are GHS500,000, variable costs are GHS200,000, and fixed costs are GHS240,000. The contribution to sales (C/5) ratio will be a) 40% b) 48% c) 52% d) 60% 7 If the selling price per unit is GHS16, the variable cost per unit is GHS12, and fixed costs are GHS160,000, the sales units required to make a profit of GHS20,000 will be a) 11,250 b) 35,000 c) 40,000 d) 45,000 8 A firm has sales of 4000 units, selling price per unit of GHS25, variable cost per unit of GHS22 and fixed costs are GHS9,000. The margin of safety is: a) 20 % b) 25% END OF PAPER c) 36% d) 40% 9 Which of the following statements about breakeven charts is/are correct? I The sales revenue line starts at the origin Il The sales revenue line crosses the total cost line at the breakeven point III The fixed costs are represented by a straight line parallel to the vertical axis a) I and II only b) I and Ill only c) II and III only d) I, II and III 10 A company has a selling price per unit of GHS20, variable cost per unit of GHS15, and fixed costs of GHS160,000. The sales units required to make a loss of GHS10,000 will be a) 8,000 b) 20,000 c) 30,000 d) 35,000 1 Which of the following is true at breakeven point? a) Sales revenue = variable cost b) Profit fixed cost + variable cost c) Sales revenue total cost-variable cost d) Contribution fixed cost 2 The margin of safety may be defined as: a) Difference between sales and breakeven point sales b) Extent to which sales revenue exceeds fixed costs c) Excess of planned sales over actual sales d) Point at which breakeven point sales are achieved 3 A company has fixed costs of GHS40,000. The selling price is GHS12.50 with a variable cost of GHS7.50 per unit. The breakeven point in units is a) 3,200 b) 8,000 c) 5,333 d) 2,000 4 A firm has a selling price of GHS12.95 per unit with an average variable cost of GHSS.44. Fixed costs are GHS140,000. The variable cost percentage is a) 42% b) 40% c) 24% d) 30% 5 A has a contribution to sales ratio of 40%. Fixed costs amount to GHS90,000. The units required to break even is a) 3,000 b) 4,500 c) 225,000 d) impossible to calculate without further information 6 Sales are GHS500,000, variable costs are GHS200,000, and fixed costs are GHS240,000. The contribution to sales (C/5) ratio will be a) 40% b) 48% c) 52% d) 60% 7 If the selling price per unit is GHS16, the variable cost per unit is GHS12, and fixed costs are GHS160,000, the sales units required to make a profit of GHS20,000 will be a) 11,250 b) 35,000 c) 40,000 d) 45,000 8 A firm has sales of 4000 units, selling price per unit of GHS25, variable cost per unit of GHS22 and fixed costs are GHS9,000. The margin of safety is: a) 20 % b) 25% END OF PAPER c) 36% d) 40% 9 Which of the following statements about breakeven charts is/are correct? I The sales revenue line starts at the origin Il The sales revenue line crosses the total cost line at the breakeven point III The fixed costs are represented by a straight line parallel to the vertical axis a) I and II only b) I and Ill only c) II and III only d) I, II and III 10 A company has a selling price per unit of GHS20, variable cost per unit of GHS15, and fixed costs of GHS160,000. The sales units required to make a loss of GHS10,000 will be a) 8,000 b) 20,000 c) 30,000 d) 35,000
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The detailed answer for the above question is provided below 1 Answer d Contribution Fixed cost Explanation Break even point is the level of activity ... View the full answer
Related Book For
Managerial Economics A Problem Solving Approach
ISBN: 978-1133951483
3rd edition
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
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