QuizCh5.pdf - Managerial Accounting Quiz Chapter ,=LOne (....

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Managerial Accounting Quiz Chapter 5 ,=LOne way to compute the totbl contribution margin is to add total fixed expenses to net operating income. (. True False 2. On a CVP gaph for a profitable company, the total revenue line will be steeper than the total cost line. Try Ealse J 3. All other things the same, a reduction in the variable expense per unit will cause the break-even point to rise. True False 4. Contribution margin can be defined as: A. the amount of sales revenue necessary to cover variable expenses. B. sales revenue minus fixed expenses. Q. the amount of sales revenue necessary to cover hxed and variable expenses. -D) sales revenue minus variable expenses. , 5. If a company is operatingatthe break-even point: A. its contribution margin will be equal to its variable expenses. .1B)its margin of safety will be equal to zero. C. its fixed expenses will be equal to its variable expenses. D. its selling price
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This note was uploaded on 09/08/2010 for the course BUS 21 at San Jose State University .

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QuizCh5.pdf - Managerial Accounting Quiz Chapter ,=LOne (....

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