Select the term from the list provided that best describes each of the following descriptions or definitions.Your AnswerDescription or DefinitionTerm?A. The sales volume that equates total revenue with total costs1. Break-even point?B. (Total sales - Total variable costs) divided by Number of units sold2. Contribution margin per unit?C. A strategy that sets the selling price based competitive forces and then determines what cost structure will allow the firm to earn its desired profit3. Contribution margin ratio?D. The examination of the interrelationships between selling prices, volumes, and variable and fixed costs4. Cost-volume-profit analysis?E. (Selling price - Variable costs)/Selling price5. Equation technique?F. (Budgeted sales - Break-even sales) divided by Budgeted
sales6. Margin of safety?G. Break-even point = (Unit selling price × number of units sold) = Total fixed costs + (Unit variable cost × number of units sold)7. Target pricing
What will be an ideal response?
| Your Answer | Description or Definition | Term |
| 1 | A. The sales volume that equates total revenue with total costs | 1. Break-even point |
| 2 | B. (Total sales - Total variable costs) divided by Number of units sold | 2. Contribution margin per unit |
| 7 | C. A strategy that sets the selling price based competitive forces and then determines what cost structure will allow the firm to earn its desired profit | 3. Contribution margin ratio |
| 4 | D. The examination of the interrelationships between selling prices, volumes, and variable and fixed costs | 4. Cost-volume-profit analysis |
| 3 | E. (Selling price - Variable costs)/Selling price | 5. Equation technique |
| 6 | F. (Budgeted sales - Break-even sales) divided by Budgeted sales | 6. Margin of safety |
| 5 | G. Break-even point = (Unit selling price × number of units sold) = Total fixed costs + (Unit variable cost × number of units sold) | 7. Target pricing |
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