20615116
Description
Quiz by Jevgenija Zukova, updated more than 1 year ago
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Created by Jevgenija Zukova
over 4 years ago
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Question 1
Question
Blue Corp shows monthly fixed costs of £1,797 and per unit cost of £9.28 while selling 411 units in a single month. What is the minimum price Blue Corp must sell each unit to break-even?
Answer
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£13.65
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£13
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£15
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£15.65
Question 2
Question
A start up company spends £1,100 on their rent monthly. As well as £265 on utilities, £12.65 per unit of materials and assembly and £625 on labour. If their product sells for £29.99 per unit, how many units must they sell to break even?
Answer
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109
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111
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113
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115
Question 3
Question
Sam sells a product for £24.75 and fills orders averaging 37 units a day. His cost to produce and assemble each item is £3.11. If Sam is open for business five days a week, what is his contribution margin per unit?
Answer
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£20.64
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£21.64
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£22.64
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£23.64
Question 4
Question
The margin of safety is
Answer
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The excess of actual sales revenue over actual variable expenses.
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The excess of actual sales revenue over actual fixed expenses.
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The excess of actual sales revenue over break even sales revenue.
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The excess of actual sales revenue over total contribution margin.
Question 5
Question
To lower a company's break even point, managers should...
Answer
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Increase the sales price of the product.
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Decrease fixed expenses.
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Decrease variable expenses.
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Take any or all of these actions.
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