RETL 262 Exam 3

A company's product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit?

$90

The amount of a unit's sales price that helps to cover fixed expenses is its ________.

contribution margin

When fixed costs decrease and all other variables remain unchanged, the break-even point will ________.

decrease

When sales price increases and all other variables are held constant, the break-even point will ________.

decrease

When variable costs increase and all other variables remain unchanged, the break-even point will ________.

increase

Which of the budgets is a formal comprehensive plan for a company's futuer?

master budget

Which of the following is an operating budget?

production budget

Which of the operating budgets is prepared first?

sales budget

The most common budget is prepared for a ________.

year

Which approach requires management to justify all its expenditures?

zero based budget