Quick: work the break-even

Exercise and reference answers

Questions

1. Question

   Contribution per unit is

   Choices

   1. 30
   2. 45
   3. 15

   Correct choice

   15

2. Question

   Break-even point in units is

   Choices

   1. 10,000
   2. 5,000
   3. 15,000

   Correct choice

   10,000

3. Question

   The P/V ratio is

   Choices

   1. 25 per cent
   2. 50 per cent
   3. 75 per cent

   Correct choice

   50 per cent

4. Question

   Units needed to earn a profit of 20,000 are

   Choices

   1. 10,500
   2. 12,000
   3. 11,334

   Correct choice

   11,334

Instructions

Fixed cost 1,50,000. Selling price 30 per unit. Variable cost 15 per unit.

Explanation