ACCT 245-All else being equal, if sales revenue doubles

  

12) All else being equal, if sales revenue doubles, fixed costs will:

A decrease on a per unit basis.

B decrease in total.

C increase in total.

D increase on a per unit basis.

42) Profit is indicated on a cost-volume-profit graph by:

A the vertical difference between the revenue line and the cost line.

B the horizontal difference between the revenue line and the cost line.

C the vertical difference between zero and the break-even point.

D the horizontal distance between zero and the break-even point.

45) Degree of operating leverage is used to:

A calculate break-even sales given change in profit.

B calculate change in sales given change in profit.

C calculate change in profit given change in sales.

D calculate break-even sales given change in sales.

When a firm has limited direct labor hours, it should prioritize the product with:

A the lowest direct labor hours per unit.

B the highest contribution margin per unit.

C the highest selling price per unit.

D the highest contribution margin per direct labor hour.

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