ASSESS YOUR PROGRESS > Review Questions 1. Wh e n 2. What is de e mple Where c an emple 4. What is the purpose of using the high & Describe the three of the high-low method 6What is the releva g e cated in Alanta, Georgische manager's salary per person who is paid a monthly salary. Relative to Store is located in Atlanta, Georgia, is the fi e variable? Why? A chain of C onsumer e ve to the number of stone is the manager wary fed naper person who is paid a monthly sal ller 10. What are the three wwscorbution margin can be espressa Hon e ru income nemam radion 11. What are the CVP 14. What is the breakeven poin? What are the three aroches a ulasine e sales required to achie breakeven point Give the formule for each one At the three approaches to calculate was required to achieve the breakeren which one(s) calculate the required in unies and which one(s) calculate the required sales in dollar 17. What is target people? 18. Why is the calculation to determine the rest profit considered a variation of the break even calculation 19. On the CVP graph, where is the breakeven point shown? Why? 20. What is sensitivity analysis? How do managers use this tool 21. What effect does an increase in sales price have on contribution margin An increase in fixed costs An increase in variable costs 22. What is cost stickiness? Why do managers need to be aware of cost stickiness? 23. What is the margin of safety? What are the three ways it can be expressed? 24. What is a company cost structure? How can cost structure affect a company profits? 25. What is operating leverage? What does it mean if a company has a degree of operating leverage of 3 26. How can CVP analysis be used by companies with multiple products? 27A. What is absorption costing