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Question 1
Contribution margin is calculated by takes sales minus variable costs
True
False
Question 2
Margin of safety represents how much sales can drop before a company will start to lose money.

True
False

Question 3
If you create the contribution margin income statement using the break even sales amount for total sales your operating income or profit will be zero
True
False
Question 4
On the breakeven point graph, if total dollar sales or total units sold are above the breakeven point, this means you have a profit
True
False
Question 5
If the variable costs per unit increases for a company and all other costs and revenue numbers remain the same, breakeven will increase (harder to break even)
True
False
Question 6
Contribution margin per unit is calculated by taking sales per unit minus variable costs per unit.
True
False
Question 7
Contribution margin is calculated by takes sales plus variable costs
True
False
Question 8
Breakeven means a company has $0 in profit and $0 in loss
True
False
Question 9
Contribution margin measures how much of sales or revenue is available to cover fixed costs.
True
False
Question 10
Contribution margin per unit is calculated by taking sales per unit plus variable costs per unit.
True
False

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