Purchase Solution

Multiple Choice

Not what you're looking for?

Ask Custom Question

1. The level of sales at which revenues equal expenses and net income is zero is called the:
a)margin of safety
b)contribution margin
c)break-even point
d)marginal income point

2. The ________ is the change in total results under a new condition, in comparison with some given or known condition.
a)incremental effect
b)detrimental effect
c)conditional effect
d)comparability effect

3. Ankeny Company wishes to earn after-tax net income of $18,000. Total fixed costs are $84,000, and the contribution margin per unit is $6.00. Ankeny's tax rate is 40%. The number of units that must be sold to earn the targeted net income is:
a)14,000 units
b)17,000 units
c)19,000 units
d)21,500 units

4. As the level of activity decreases within the relevant range:
a)total fixed costs increase
b)fixed costs per unit decreases
c)total variable costs increase
d)variable costs per unit remain unchanged

Purchase this Solution

Solution Summary

The solution explains some multiple choice questions in accounting

Solution Preview

1. c) breakeven point
At breakeven point total revenues = total costs

2. a) incremental effect

3. First calculate ...

Purchase this Solution


Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media