EXERCISE 1 TERMINOLOGY. A number of terms are listed below: contribution margin, cost-volume-profit analysis, gross margin, contribution margin percentage, breakeven point

Required Select the terms from the above list to complete the following sentences (use each term only once).

1. ___________________is a model to analyze the behaviour of net income in response to change in total revenues, total costs, or both.

2. The _________in units is the quantity of units sold to attain an operating income of zero.

3. The ______________________ is equal to revenue less variable costs.

4. The ___ equals the contribution margin per unit divided by the selling price per unit.

5. The __________________ equals revenues less cost of goods sold