Final Quiz

Sales revenue is $250,000, fixed costs are $90,000, profit is $50,000, and sales price per unit is $25.00. Variable cost per unit is:

• $11

• $15

• $20

• $25

The breakeven point is when sales and costs equal one another

• True

• False

CVP stands for Cost, Volume, Production

• True

• False

CVP can be used to help hospitality managers determine the level of sales required to cover their fixed and variable costs

• True

• False

In a CVP analysis concerning two or more departments, one needs to know the sales revenue mix, or ratio of sales revenue, for each department.

• True

• False

A long-term budget generally covers a day, month, or quarter

• True

• False