Cost Volume Profit Analysis

Break-even point is the point where:

• Revenue > Cost

• Revenue < Cost

• Revenue = Cost

• Revenue ÷ Cost

BEP calculation can be calculated using:

• Equation approach

• Evaluation approach

• Comprehensive approach

• Contribution Margin approach

In order to calculate Break-even point and Target profit analysis, what equation can be used?

• Sales = Fixed cost + Variable cost

• Profit + Variable cost - Fixed cost = Sales

• Sales - Variable cost - Fixed cost = Profit

• Fixed cost + Variable cost x Profit

Sales price is RM20 per unit and Variable cost is RM10 per unit. What is contribution margin per unit?

• RM5

• RM10

• RM30

• RM200

Manis Company's sales price is RM34 per unit with total fixed cost RM20,000. The variable cost is RM20 per unit. What is break-even point in unit?

• 1,489 units

• 14,285 units

• 148 units

• 1,429 units

The current sales price for Jameela Company is RM16 per unit and variable cost is RM8 per unit. The total fixed cost for the year is RM125,000 and the targeted profit is RM35,000. What is the total units sales for Jameela Company if they want to achieve the target profit?

• 15,000 units

• 16,000 units

• 20,000 units

• 22,000 units

The current sales price for Jameela Company is RM16 per unit and variable cost is RM8 per unit. The total fixed cost for the year is RM125,000 and the targeted profit is RM35,000. What is the total units sales for Jameela Company if they want to achieve the target profit, considering the increase in sales price by RM1.50 and the decrease in variable cost by RM2?

• 13,609 units

• 14,548 units

• 15,765 units

• 13,913 units

Pantas Sdn. Bhd. manufacture sport shirts to students. The variable costs consist of direct material RM10, direct labor RM6, variable overhead RM7 and variable selling RM3.50. The total fixed cost would be RM12,500 and the sport shirts are sold with a price of RM30. How much the breakeven point sales in units?

• 3,772 units

• 2,357 units

• 5,372 units

• 3,571 units