Breakeven and Contribution to Sales Ratio

A product is sold for $100 per unit. Fixed costs are $90 000 and variable costs are 60 % of the selling price.

What is the break-even sales revenue?

• $36 000

• $90 000

• $150 000

• $225 000

The following information relates to the budgeted and actual sales of a product.

What change in the break-even point has been caused by actual sales being different from

budget?

• 20 % better

• 20 % worse

• 80 % better

• 80 % worse

A business has provided the following information about a product.

unit contribution $6

total fixed costs $16 800

It is proposing to increase the unit selling price from $18 to $20.

What would be the effect of this on the break-even quantity?

• decrease by 700 units

• increase by 700 units

• decrease by 1400 units

• increase by 1400 units

A company has the following information.

What is the company’s contribution to sales ratio?

• 20%

• 33%

• 67%

• 80%

A business has the following information relating to its single product.

What is its contribution to sales ratio?

• 20%

• 46.67%

• 53.33%

• 80%

A business provided the following information about a product.

What is the contribution to sales ratio?

• 20%

• 37.5%

• 62.5%

• 80%

Which line represents total variable cost?

• A

• B

• C

• D

The following information is available in respect of a product.

Production is 50 000 units.

The fixed costs are $300 000. The margin of safety is 20 000 units.

The directors propose to increase the unit selling price by 10%.

What will be the percentage increase in the margin of safety?

• 13.6%

• 20%

• 30%

• 36.4%

A company makes a single product and sells it for $12 per batch.

The variable cost is $4 per batch.

Fixed costs have been absorbed based on a normal activity level of 1000 batches at $3 per batch.

What is the profit under marginal costing if the company makes and sells 1500 batches?

• $6000

• $7500

• $9000

• $12 000

The following information relates to one unit of a product.

What is its contribution to sales ratio?

• 35%

• 40%

• 60%

• 65%