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6. How do you find the Sales Level needed to make required profit?

  • budgeted sales units – break-even sales units
  • (M of S in units/budgeted sales) x 100
  • (Fixed costs + required profit)/contribution per unit
  • (budgeted sales units – break-even sales units) x selling price.

7. How do you find the M of S in £ sales revenue?

  • Expected sales in units - Fixed Overheads per unit
  • contribution per unit/amount of scarce resource used.
  • (budgeted sales units – break-even sales units) x selling price
  • Current Liabilities - Current Assets

8. How do you calculate contribution per unit?

  • Selling price per unit - Variable cost per unit
  • Variable cost x Selling Price
  • You can't
  • Selling Price per unit / Variable cost per unit

9. How do you find the total absorption cost per unit?

  • total variable cost + fixed overhead cost per unit.
  • (Fixed costs + required profit)/contribution per unit
  • Fixed overhead cost per unit x Total variable cost.
  • Current Liabilities - Current Assets

10. How do you find the M of S as a percentage?

  • Selling Price per unit / Variable cost per unit
  • (M of S in units/budgeted sales) x 100
  • (budgeted sales units – break-even sales units) x selling price
  • BEP - Budgeted Sales Units