Quiz 4 (1) - Quiz 4 1. Once the break-even point is...

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Quiz 4 1. Once the break-even point is reached: A. the total contribution margin changes from negative to positive. B. net operating income will increase by the unit contribution margin for each additional item sold. C. variable expenses will remain constant in total. D. the contribution margin ratio begins to decrease. 2. A company increased the selling price for its product from $5 to $6 per unit when total fixed expenses increased from $100,000 to $200,000 and variable expense per unit remained unchanged. How would these changes affect the break-even point? A. The break-even point in units would increase. B. The break-even point in units would decrease. C. The break-even point in units would remain unchanged. D. The effect cannot be determined from the information given. 3. Last year, Twins Company reported $750,000 in sales (25,000 units) and a net operating income of $25,000. At the break-even point, the company's total contribution margin equals $500,000. Based on this information, the company's:
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This note was uploaded on 04/30/2011 for the course ACCOUNTING 200 taught by Professor Levine during the Spring '11 term at DeVry San Diego.

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Quiz 4 (1) - Quiz 4 1. Once the break-even point is...

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