Marginal Costing
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Q1. Apart from a Sales Commission of 10% of Sales, our Selling and Administration expenses are a Fixed Cost. If our Sales figure is €442,000 and the total Selling and Administration Expenses are €94,500, how much of the Selling and Administration Expenses are a Fixed Cost? *
10 points
Q2. Fixed Costs are €240,000. Selling Price is €6. Total Variable Costs are €120,000 and 30,000 products are sold. What is the Break-Even Point? *
10 points
Q3. Using the figures from Q2, if the current sales volume is 160,000 units, what is the Margin of Safety? *
10 points
Q4. Using the figures from Q2, how many units would need to be sold to make a total profit of €60,000? *
10 points
Q5. Using the figures from Q2, how many products would need to be sold in order to make a profit of €1 on each sale? *
10 points
Q6. Contribution is... *
10 points
Q7. On a Break-Even Chart, the Break-Even Point is visible where... *
10 points
Q8. Spending an extra 50c per unit on improved packaging, would be an example of... *
10 points
Q9. What is the Contribution Sales Ratio? *
10 points
Q10. Marginal Costing... *
10 points
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