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MCQs

Total Questions : 50 | Page 3 of 5 pages
Question 21. The fixed cost is $25000 and the breakeven revenue is $95000, then the contribution margin will be
  1.    $32
  2.    $30
  3.    $25
  4.    $26.31
 Discuss Question
Answer: Option B. -> $30
Answer: (b).$30
Question 22. The gross margin is divided by revenues to calculate the
  1.    income margin percentage
  2.    Gross margin percentage
  3.    cost margin percentage
  4.    sales margin percentage
 Discuss Question
Answer: Option B. -> Gross margin percentage
Answer: (b).Gross margin percentage
Question 23. If the contribution margin is $72000 and the operating income is $12000, then the degree of operating leverage would be
  1.    8
  2.    7
  3.    6
  4.    5
 Discuss Question
Answer: Option C. -> 6
Answer: (c).6
Question 24. If the fixed cost is $15000 and the breakeven revenue is $45000 then the contribution margin will be
  1.    33.34%
  2.    43.34%
  3.    23%
  4.    25%
 Discuss Question
Answer: Option A. -> 33.34%
Answer: (a).33.34%
Question 25. If the breakeven revenue is $360000 and the revenue per bundle is $12000, then the number of bundles to be sold to breakeven can be
  1.    52 bundles
  2.    48 bundles
  3.    45 bundles
  4.    30 bundles
 Discuss Question
Answer: Option D. -> 30 bundles
Answer: (d).30 bundles
Question 26. If the budgeted revenue is $20000 and the breakeven revenue is $15000, then the margin of safety will be
  1.    $35,000
  2.    $13,000
  3.    $5,000
  4.    $10,000
 Discuss Question
Answer: Option C. -> $5,000
Answer: (c).$5,000
Question 27. The graph, which shows the change in sold quantity and its effect on operating income is called
  1.    PV graph
  2.    CV graph
  3.    SO graph
  4.    QI graph
 Discuss Question
Answer: Option A. -> PV graph
Answer: (a).PV graph
Question 28. If the total units of product A, B and C are as 200,300 and 400 respectively then the sales mix would be
  1.    100 units
  2.    900 units
  3.    400 units
  4.    500 units
 Discuss Question
Answer: Option B. -> 900 units
Answer: (b).900 units
Question 29. The contribution margin is divided to operate income to calculate
  1.    degree of operating leverage
  2.    degree of change
  3.    degree of change in margin
  4.    degree of change in income
 Discuss Question
Answer: Option A. -> degree of operating leverage
Answer: (a).degree of operating leverage
Question 30. If the margin of safety is $35000 and the budgeted revenue is $80000, then the margin of safety in percentage will be
  1.    32.75%
  2.    43.75%
  3.    53%
  4.    22%
 Discuss Question
Answer: Option B. -> 43.75%
Answer: (b).43.75%

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