The CVP model is one example of a financial model that can be used to calculate which of the following?

a.	required selling price and conduct sensitivity analysis.
b.	new break-even points and calculate multiple break-even points.
c.	target profit points and compare alternatives.
d.	All of the answers are correct.

2. Which of the following is the correct formula to use to calculate the contribution margin per unit?

a.	Selling price per unit less fixed costs and variable costs per unit.
b.	Selling price per unit less fixed costs per unit.
c.	Selling price per unit less variable costs per unit.
d.	None of the answers is correct.

3. What happens to the contribution margin if fixed expenses decrease while variable cost per unit remain constant.

a.	Contribution margin will be unchanged.
b.	Contribution margin will be higher.
c.	Contribution margin will be lower.
d.	Cannot determine the change.