please
answer all 4 multiple choice questionsHomework Answers
1. In cost volume-profit graph , the total cost line meets the Y(vertical) axis at the :
Answer - c. total fixed cost point because when total cost touches y axis then fixed cost is going on when business is running or not.
2. Calculate the degree of operating leverage.
Answer - c. Degree of operating leverage = Total contribution Margin / operating income
3. the process of building package contribution margin is followed in:
Answer - b. the units sold approach in a multiple product setting.
4. Answer - b. 143 chairs.
Explanation: selling price = 150*1600= 240000
variable cost = 80*1600= 128000
fixed cost = 102000
firstly we will find break even sales = selling cost - variable cost = 240000 - 128000 = 112000
Now we will calculate Contribution of Margin = fixed cost / break even sales*100 = 102000/112000*100 = 91.071428%
Margin of safety = no. of units sold * contribution of margin = 1600*91.071428% = 1457
in units = 1600-1457 = 143 chairs.
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answer all 4 multiple choice questions
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