The breakeven point on a CVP graph is

1. the intersection of the fixed expense line and the total expense line.

2. the intersection of the fixed expense line and the sales revenue.

3. the intersection of the sales revenue line and the total expense line.

4. the intersection of the sales revenue line and the y-axis.

Total contribution margin less total fixed expenses equals

1. sales revenue.

2. gross profit.

3. operating income.

4. contribution margin ratio.

If the sales price of a product increases while everything else remains the same, what happens to the breakeven point?

1. The breakeven point will decrease.

2. The breakeven point will remain the same.

3. The breakeven point will increase.

4. The effect cannot be determined without further information.

How is the sales volume in dollars necessary to reach a target profit calculated?

1. (fixed expenses + target profit) / contribution margin ratio

2. target profit / unit contribution margin

3. (fixed expenses + target profit) / unit contribution margin

4. target profit / contribution margin ratio