Reference no: EM132607271
Question 1: A company that desires to lower its break-even point should strive to:
A. sell more units
B. increase fixed costs
C. decrease selling prices
D. reduce variable costs
Question 2: If a company desires to increase its safety margin, it should:
A. increase fixed costs
B. stimulate sales volume
C. decrease selling prices
D. decrease the contribution margin
Question 3: If Zarra Sdn Bhd's fixed costs are RM285, 000, the sales price per unit is RM80 per unit, and the variable cost per unit is RM20, calculate the break-even point (in RM).
A. RM380,000
B. RM95,000
C. RM14,250
D. RM4,750
Question 4: Kucai Bhd has fixed costs of RM200, 000 and variable costs are 30% of sales. If the company desires net income of RM10, 000, what would be the required sales?
A. RM700,000
B. RM525,000
C. RM350,000
D. RM300,000
Question 5: CVP analysis DOES NOT consider:
A. level of activity
B. variable cost per unit
C. fixed cost per unit
D. sales mix
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