Managerial accounting Study Set 9
Quiz 4: Cost-Volume-Profit Relationships
What is the company's contribution margin ratio? A) 62.5%. B) 160%. C) 500%. D) 20%.
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What is the company's degree of operating leverage? A) 0.12. B) 2.5. C) 0.4. D) 3.3.
What is the company's break-even sales in dollars? A) $0. B) $640,000. C) $700,000. D) $400,000.
If sales increase by 200 units,by how much should before-tax profits increase? A) $16,000. B) $5,000. C) $2,000. D) $10,000.
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