Accounting 4

What is the term for sales price per unit minus variable cost per unit?

• Contribution

• Operating profit

• Net profit

• Marginal revenue

How do total variable costs typically respond to changes in production levels during periods of price inflation?

• They remain constant regardless of production levels

• They increase as production levels rise

• They decrease as production levels rise

What is the formula for contribution margin?

• Sales price per unit minus fixed cost per unit

• Sales price per unit minus variable cost per unit

• Total revenue minus total variable cost

Which of the following is not a variable cost?

• Direct labor

• Raw materials

• Spotify subscription

• Electricity

What happens to contribution margin when sales price per unit increases?

• Increases

• Decreases

• Remains the same

If Sales price per unit is 10 and variable cost per unit is 7, what is Contribution margin?

• 5

• 4

• 3

• 2

If Sales price/unit is 100 and variable cost is 75/unit. Given Fixed costs of 200, what is Break Even i units?

• 10

• 9

• 8

• 7

What is the Break Even in units if Ava, Ethan, and Mason each sell 5 units with a contribution margin of 5 per unit and fixed costs of 100?

• 25

• 20

• 15

• 10

If Lily, Aria, and Ethan each sold a product with a contribution margin of 14 and a variable cost per unit of 32, what is the sales price per unit?

• 47

• 46

• 45

• 44

Rohan, Michael, and Kai are planning a fundraising event. Their target profit is 4,000,000 and Fixed costs are 40,000,000. If Contribution margin is 40,000 - what is break even in units?

• 1.200

• 11.000

• 1.100

• 10.000