Fill the gaps in three CVP rules

Exercise and reference answers

Missing parts

1. Answer

   unit contribution margin

   Choices

   1. unit selling price
   2. unit contribution margin
   3. total variable costs

2. Answer

   sales

   Choices

   1. fixed costs
   2. operating income
   3. sales

3. Answer

   operating income

   Choices

   1. operating income
   2. total fixed costs
   3. units sold

Complete the statement

Breakeven in units = total fixed costs divided by {0}. Contribution margin ratio = contribution margin divided by {1}. Operating leverage = contribution margin divided by {2}.

Instructions

Tap a chip for each blank so all three lines read correctly.

Explanation