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