Which of the following questions cannot be answered by cost-volume-profit analysis?
A) What is the most profitable sales mix?
B) Will the firm have sufficient funds to meet its commitments to creditors?
C) What additional sales volume is required to offset an increase in purchase costs?
D) If variable costs, such as labour, are replaced with fixed costs, such as machinery, what will be the impact on profits?
Correct Answer:
Verified
Q22: A small publishing house sold 25 000
Q23: Which of the following is not an
Q24: Contribution margin can be calculated as:
A) profit
Q25: The break-even point is the level of
Q26: When fixed costs are $140 000 and
Q28: Contribution margin is:
A) sales less fixed costs.
B)
Q29: Product A sells for $100 per unit
Q30: Contribution margin is:
A) sales less cost of
Q31: The term 'a' in the cost equation,
Q32: Break-even analysis adjusted for a profit factor:
A)
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