IB Finance Year 1 and 2: Supply Chain and Finance: Cost-Volume-Profit Analysis

Description

This test is meant to check your knowledge of the topic.
Gaby Gijsberts
Quiz by Gaby Gijsberts, updated more than 1 year ago
Gaby Gijsberts
Created by Gaby Gijsberts over 3 years ago
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Resource summary

Question 1

Question
Which of the following costs would be a fixed cost for Shaun, a knitwear manufacturer?
Answer
  • Purchasing wool
  • Labour cost: knitting machine operators
  • Factory rent
  • Labels and packaging

Question 2

Question
Which of the following definitions of break-even point is correct?
Answer
  • The break-even point is where total revenue equals total fixed costs plus variable costs.
  • The break-even point is where total sales revenue equals total contribution.
  • The break-even point is where total fixed costs equals total variable costs.
  • . The break-even point is where total revenue equals total fixed costs less variable costs.

Question 3

Question
Toby is arranging for a rock concert to be held in the students union. The use of the hall will be free but security costs of £100 will have to be met. The cost of the main band will be £2,500 and the supporting band will cost £150. Tickets will be priced at £11 each. What is the break-even point for this event?
Answer
  • 227 tickets
  • 236 tickets
  • 241 tickets
  • 250 tickets
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