Accounting

1. Total contribution margin is defined as A. selling price times units sold. B. cost to produce goods times units sold C. total sales revenues less total variable costs. D. total variable costs less fixed costs. 2. Armold Corp has a selling price of $15, variable costs of $10 per unit, and fixed costs of $25,000. If Arnold sells 12,000 units, contribution margin will equal A. $155,000 B. $145,000 C. $35,000 D. $60,000 Gambol Corporation has a selling price of $20, variable costs of $15 per unit, and fixed costs of $25,000. Gambol expects profit of $300,000 at its anticipated level of production. If it sells 5,000 units more than expected, how much higher will its profits be? A. $25,000 B. $100,000 C. $275,000 D. $300,000 3. Alfred Corp has a selling price of $15, variable costs of $10 per unit, and fixed costs of $25,000. How many units must be sold to break-even? A. 5,000 B. 10,000 C. 2,500 D. 1,667 4. 5. The break-even point is A. the point where zero contribution margin is earned. B. the point where zero profit is earned. C. the point where selling price just equals variable cost. D. equal to sales revenue less fixed costs