Which of the following assumptions that underlie basic CVP analysis is correct ?

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