ch5

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Cartier Corporation currently sells its products for $50 per unit. The company's variable costs are $20 per unit. Fixed expenses amount to a total of $5,000 per month. What is the company's variable cost ratio? 40% 60% 100% 20%

40%

What does the green line in the CVP graph indicate? Total fixed costs Total expenses Total variable costs Total sales revenue

Total expenses

The following explains contribution margin ________. sales minus fixed cost fixed cost minus variable cost sales minus variable cost minus fixed cost sales minus variable cost

sales minus variable cost

Break-even point is the level of sales at which ______. total profits equals total costs total profits exceed total costs total revenue equals total costs total sales equal total projections

total revenue equals total costs

Once the break-even point has been reached, net operating income will increase by the amount of the _____ for each additional unit sold. unit contribution margin unit selling price variable expense per unit fixed expense per unit

unit contribution margin

Atlas Corporation sells 100 bicycles during a month. The contribution margin per bicycle is $200. The monthly fixed expenses are $8,000. Compute the profit from the sale of 100 bicycles ________. $12,000 $10,000 $20,000 $8,000

$12,000

Atlas Corporation sells 100 bicycles during a month at a price of $500 per unit. The variable expenses amount to $300 per bicycle. How much does profit increase if it sells one more bicycle? $500 $300 $200 $20,200

$200

Cartier Corporation currently sells its products for $50 per unit. The company's variable costs are $20 per unit. Fixed expenses amount to a total of $5,000 per month. What is the company's contribution margin ratio? 40% 60% 100% 20%

60%

What is represented on the X axis of a cost-volume-profit (CVP) graph? Sales revenue Fixed cost Sales volume Variable cost

Sales volume


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