All MCQs for Competitive Exams

2331

What is the standard formula used to determine the contribution margin?

A

cost + revenue

B

revenue + all variable cost

C

revenue – breakeven units

D

revenue – all variable cost

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2332

Which financial metric is derived by deducting total variable costs from total revenues?

A

contribution margin

B

variable margin

C

revenue margin

D

divisor margin

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2333

Calculate the number of units required to be sold to achieve a specific target operating income, given the contribution margin per unit.

A

100 units

B

120 units

C

110 units

D

140 units

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2334

Determine the contribution margin per unit if the total contribution margin is $15,000 for 500 units sold.

A

{'value': '$30 per unit', 'text': '$30 per unit'}

B

{'value': '$40 per unit', 'text': '$40 per unit'}

C

{'value': '$50 per unit', 'text': '$50 per unit'}

D

{'value': '$20 per unit', 'text': '$20 per unit'}

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2335

What is the value of operating income at the break-even point?

A

$3,000

B

$1,000

C

$2,000

D

zero

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2336

Determine the contribution margin if the direct material cost of goods sold is $4,500 and total revenue is $9,000.

A

-$4500

B

$4500

C

$13500

D

-$13500

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2337

Calculate the breakeven point in units if the total fixed costs are $40,000 and the contribution margin per unit is $800.

A

70 units

B

30 units

C

50 units

D

60 units

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2338

Calculate the target operating income per unit if the total annual target operating income is $300,000 and the total production volume is 25,000 units.

A

{'id': 'D', 'value': '$18'}

B

{'id': 'C', 'value': '$16'}

C

{'id': 'A', 'value': '$15'}

D

{'id': 'B', 'value': '$12'}

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2339

Which financial metric is calculated by dividing total fixed costs by the contribution margin per unit?

A

variable revenue

B

total revenue

C

breakeven revenue

D

fixed revenue

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2340

What is the breakeven point in units given fixed costs of $30,000 and a contribution margin per unit of $600?

A

60 units

B

65 units

C

50 units

D

70 units

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