Reference no: EM132069490
Questions -
Q1. Contribution margin is the amount of revenue remaining after deducting
a. cost of goods sold.
b. fixed costs.
c. variable costs.
d. contra-revenue.
Q2. Moonwalker's CVP income statement included sales of 5,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $110,000. Net income is
a. $500,000.
b. $200,000.
c. $190,000.
d. $90,000.
Q3. Woolford's CVP income statement included sales of 5,000 units, a selling price of $50, variable expenses of $30 per unit, and net income of $25,000. Fixed expenses are
a. $75,000.
b. $100,000.
c. $150,000.
d. $250,000.
Q4. In 2016, Teller Company sold 3,000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $270,000. The same selling price, variable expenses, and fixed expenses are expected for 2017. What is Teller's break-even point in sales dollars for 2017?
a. $900,000
b. $2,700,000
c. $1,800,000
d. $2,571,429
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