Which of the following assumptions that underlie basic CVP analysis is correct? a . CVP analysis can
Question:
a . CVP analysis can be used only if the company only has one product.
b . There is no need to separate mixed costs into variable and fixed components.
c . The number of units produced does not
have to equal the number sold.
d . 1 The behavior of both costs and revenues are linear throughout the relevant range.
Brooke Company desires net income of $860,000 when it has $1,500,000 of fixed costs and variable costs of 75% of sales . Required sales equals?
a . 6,000,000
b . 9,440,000
c. 2,000,000
d . 3,146,667
A company's break-even point can be decreased by decreasing
a. the contribution margin ratio.
b. the contribution margin.
c.the selling price.
d. variable costs per unit.
Brooke Company desires net income of $860,000 when it has $1,500,000 of fixed costs and variable costs of 75% of sales. Contribution margin equals
a. $3,146,667
b. $2,360,000
c. $1,770,000
d. $590,000
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen