This quiz works best with JavaScript enabled. Home > Finance > Accounting > Cost Accounting > Cost Volume Profit Analysis > Cost Volume Profit Analysis – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Volume Profit Analysis Quiz 3 (6 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If sales volume increases and all other factors remain constant, then the: A) Margin of safety will increase. B) Net operating income will decrease. C) Breakeven point will decrease. D) Contribution margin ratio will increase. Show Answer Correct Answer: A) Margin of safety will increase. 2. Manis Company's sales price is RM34 per unit with total fixed cost RM20, 000. The variable cost is RM20 per unit. What is break-even point in unit? A) 148 units. B) 14, 285 units. C) 1, 489 units. D) 1, 429 units. Show Answer Correct Answer: D) 1, 429 units. 3. Once a company hits the breakeven point, net operating income will increase by the amount of BLANK for each additional unit A) Contribution margin per unit. B) Variable costs. C) Sales dollars. D) Fixed costs. Show Answer Correct Answer: A) Contribution margin per unit. 4. Which is the correct formula for calculating breakeven A) Fixed Costs-(Selling Price + Variable Costs). B) Fixed Costs-Variable Costs. C) Fixed Costs/Variable Costs. D) Fixed Costs/(Selling Price-Variable Costs). Show Answer Correct Answer: D) Fixed Costs/(Selling Price-Variable Costs). 5. The Teawalk Company is planning to sell 200, 000 units of product . The fixed costs are RM400, 000 and variable costs are 60% of selling price. In order to realize a profit of RM100, 000, the selling price per unit would have to be A) RM5.00. B) RM4.17. C) RM3.75. D) RM6.25. Show Answer Correct Answer: D) RM6.25. 6. Which of the following is the correct formula to calculate the break-even sales volume (in units) for a business? A) Fixed costs/ contribution per unit. B) Variable costs/contribution per unit. C) Variable costs /c/s ratio. D) Fixed costs/c/s ratio. Show Answer Correct Answer: A) Fixed costs/ contribution per unit. ← PreviousRelated QuizzesCost Accounting QuizzesAccounting QuizzesCost Volume Profit Analysis Quiz 1Cost Volume Profit Analysis Quiz 2 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books