Breakeven Analysis and Contribution Quiz

What is the selling price per unit of Product X?

• £4

• £10

• £6

• £8

What is the variable cost per unit of Product X?

• £10

• £6

• £8

• £4

What is the total contribution if 3000 units of Product X are sold?

• £18,000

• £30,000

• £12,000

• £24,000

What is the fixed cost of the business each month?

• £6,000

• £8,000

• £12,000

• £10,000

What is the contribution per unit of Product X?

• £10

• £4

• £6

• £8

What is the break-even output in units for the business?

• 5,000

• 10,000

• 20,000

• 16,000

What is the formula for calculating the break-even output in units?

• Total revenues divided by total variable costs

• Total fixed costs divided by contribution per unit

• Contribution per unit divided by fixed costs

• Total variable costs divided by total revenues

What does contribution per unit represent?

• Selling price per unit minus variable cost per unit

• Total revenues minus fixed costs

• Selling price per unit minus fixed costs

• Total revenues minus total variable costs

What is the difference between contribution and profit?

• Contribution covers fixed costs, profit is the difference between contribution and variable costs

• Contribution covers total revenues, profit is the difference between contribution and total variable costs

• Contribution covers variable costs, profit is the difference between contribution and fixed costs

• Contribution covers total costs, profit is the difference between contribution and total revenues

What is the main purpose of calculating contribution in a business?

• To cover total revenues and generate profit

• To cover variable costs and generate profit

• To cover fixed costs and generate profit

• To cover total costs