# A company has contribution margin per unit of 18 and

• Lecture Slides
• 9
• 93% (41) 38 out of 41 people found this document helpful

This preview shows page 6 - 9 out of 9 pages.

34. A company has contribution margin per unit of \$18 and a contribution margin ratio of 40%. What is the unit selling price? a. \$30.00 b. \$45.00 c. \$7.20 d. Cannot be determined B is correct. Section “Cost-volume-profit analysis” – The unit selling price is \$45 (\$18/.4). 35. The level of activity at which total revenues equal total costs is the D is correct. Section “Cost-volume-profit analysis” – The level of activity at which total revenues equal total costs is called the break-even point.

Subscribe to view the full document.

37. The break-even point is where B is correct. Section “Break-even analysis” – The break even point is where the contribution margin equals fixed costs. 38. The break-even point cannot be determined by C is correct. Section “Break-even analysis” – The contribution margin cannot be determined by reading prior years’ financial statements. 41. The break-even point in units is computed by dividing fixed costs by the a. contribution margin ratio. b. contribution margin per unit. c. total contribution margin. d. unit selling price. B is correct. Section “Break-even analysis” – The break-even point in units if computed by dividing fixed costs by the contribution margin per unit. 42. In a CVP graph, the break-even point is at the intersection of the sales line and the C is correct. Section “Break-even analysis” – In a CVP graph, the break-even point is at the intersection of the sales line and the total cost line.
43. In evaluating the margin of safety, the B is correct. Section “Margin of safety” – In evaluating the margin of safety, the higher the ratio, the greater the margin of safety.

Subscribe to view the full document.

• Summer '13
• Andrus
• Cost Behaviour Analysis

{[ snackBarMessage ]}

Upload your study materials now and get free access to over 25 million documents.

Upload now for FREE access Or pay now for instant access
###### "Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern