Match each item with the correct statement below.
-The relative combination of products (or services) being sold by an organization.
A)break-even point
B)Common fixed expenses
C)Contribution margin
D)Direct fixed expenses
E)Margin of safety
F)Operating leverage
G)Degree of operating leverage
H)Sales mix

Question

Quizplus · Accepted Answer

Sales mix is the relative combination of products (or services) being sold by an organization.

Answer: C
 Contribution margin is the amount of revenue remaining after deducting variable costs.

Answer: B
 Common fixed expenses are expenses that are not directly tied to any specific product or service and remain constant regardless of the level of production or sales.

Answer: D
 Direct fixed expenses are expenses that are tied to a specific product or service and do not vary with changes in production or sales.

Answer: E
 Margin of safety is the difference between actual sales and the break-even point, indicating how much sales can decline before the organization incurs losses.

Answer: F
 Operating leverage is the extent to which an organization uses fixed costs in its cost structure.

Answer: G
 Degree of operating leverage measures the percentage change in operating income that results from a percentage change in sales.

Match Each Item with the Correct Statement Below