9 - 9 Student 1 The contribution income statement would require a firm to A B C D E Separate fixed and variable costs Separate revenue into different

9 - 9 Student 1 The contribution income statement would...

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9Student: _______________________________________________________________________________________1. The contribution income statement would require a firm to: A. Separate fixed and variable costs.B. Separate revenue into different categories.C. Round off amounts to the nearest dollar.D. Ignore some estimated fixed expenses, such as depreciation.E. Restructure its entire accounting system.2. From a strategic management perspective, the primary reason a firm performs CVP analysis for breakeven planning is to find the level of sales that: 3. CVP analysis for revenue and cost planning has the primary objective of: 4. The breakeven point is: 5. CVP analysis using activity-based costs will tend to shift cost from fixed to variable classifications, resulting in: A. Lower breakeven sales.B. Higher breakeven sales.C. Breakeven sales can be higher or lower, depending on batch size.D. A higher contribution margin per unit.E. A lower contribution margin per unit.6. Calculating the margin of safety measure will help a firm answer which of the following questions? A. Will we break even?B. Are we using our debt wisely?C. How much will profits change if sales change?D. How much profit will we earn?E. How much revenue can we lose before we drop below the breakeven point?7. A relatively low margin of safety ratio for a product is usually an indication that the product: 8. High operating leverage is a measure of the risk of change in profit a firm assumes when it has relatively:

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