8.The difference between the current sales revenue and the sales at the break-even point is called thea.operating leverageb.price factorc.margin of safetyd.contribution margin9.Which of the graphs in Figure 21-1 illustrates the behavior of a total fixed cost?10.If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contribution margin ratio?11.Contribution margin is12.If fixed costs are $1,200,000, the unit selling price is $240, and the unit variable costs are $110, what is the amount of sales required to realize an operating income of $200,000?a.12,000 unitsb.9,231 unitsc.5,833 unitsd.10,769 units
13.Cost-volume-profit analysis cannot be used if which of the following occurs?14.Costs that vary in total in direct proportion to changes in an activity level are called15.Charlotte Co. has budgeted salary increases to factory supervisors totaling 9%. If selling prices and all other cost relationships are held constant, next year's break-even point
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- Spring '11
- Accounting, Total fixed costs