CVP Analysis and Marginal Analysis Paper 15

1

Mossfeet Shoe Company is a single product firm. Mossfeet is predicting that a price increase next year will not cause unit sales to decrease. What effect would this price increase have on the following items for next year?
Contribution Margin Ratio; Break-even Point






2

The contribution margin ratio is equal to:






3

The contribution margin ratio always increases when the:






4

In the middle of the year, the price of Lake Corporation’s major raw material increased by 8%. How would this increase affect the company’s break-even point and margin of safety?
Break-even point; Margin of safety






5

A $2.00 increase in a product’s variable expense per unit accompanied by a $2.00 increase in its selling price per unit will:






6

The break-even point in unit sales is found by dividing total fixed expenses by:






7

Which of the following would not affect the break-even point?






8

If a company increases its selling price by $2 per unit due to an increase in its variable labor cost of $2 per unit, the break-even point in units will:






9

To obtain the dollar sales volume necessary to attain a given target profit, which of the following formulas should be used?






10

Salinas Corporation has a degree of operating leverage of 8. This means that a 1% change in sales dollars at Salinas will generate an 8% change in:






Result

Total Questions:
Correct Answers:
Wrong Answers:
Percentage: