Cost, Volume and Profit Analysis MCQs

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1. If contribution margin is positive?

 
 
 
 

2. At the breakeven point:


 
 
 
 

3. A complete CVP graph will show that profit or loss at any level of sales is measured by:

 
 
 
 

4. Contribution margin ratio is:

 
 
 
 

5. The impact on net operating income of any given dollar change in total sales can be computed by applying which ratio to the dollar change?

 
 
 
 

6. The Hino Corporation has a breakeven point when sales are $160,000 and variable costs at that level of sales are $100,000. How much would contribution margin increase or decrease, if variable expenses dropped by $20,000?

 
 
 
 

8. Margin of safety is a term best described as the excess of:

 
 
 
 

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