Ünite Sınavı Soruları

_________________shows the amount of income generated to cover up the total fixed costs and earn the targeted profit.

Cold Co. sells one product for $10 per unit. Variable production costs are $5 per unit and fixed costs are $150.000. What is break-even sales in dollars?

_ _ _ _ _ _ _ is the cushion amount that the actual or budgeted sales can drop by, still enabling the business to break even.

Which of the following completes the sentences above?

Hakan and Hasan are two competitors in the same industry. Both companies produce computer hardware. Hakan expects a 20% increase in its operating income if its sales were to rise by 10%. On the other hand, Hasan has a contribution margin ratio of 50%, total fixed costs of $500,000 and sales revenue of $2,500,000.What is the DOL for both Hakan and Hasan?

Which of the following assumptions is the CVP based upon?

I.    The sales price per unit is constant
II.   Variable costs per unit and fixed costs are variable
III.  The firm sells all units produced
IV.   The cost structure is constant meaning that costs change only by the level of activity