Match each item with the correct statement below.The point where total sales revenue equals total costDrag answer hereFixed expenses that cannot be directly traced to individual segments and that are unaffected by the elimination of any one segmentDrag answer hereSales revenue minus total variable cost or price minus unit variable costDrag answer hereFixed costs that are directly traceable to a given segment and, consequently, disappear if the segment is eliminatedDrag answer hereThe units sold or expected to be sold or sales revenue earned or expected to be earned above the break-even volumeDrag answer hereThe use of fixed costs to extract higher percentage changes in profits as sales activity changesDrag answer hereA measure of the sensitivity of profit changes to changes in sales volumeDrag answer hereThe relative combination of products (or services) being sold by an organizationDrag answer hereOperating leverageContribution marginCommon fixed expensesSales mixDegree of operating leverageBreak-even pointDirect fixed expensesMargin of safety

The contribution margin is computed as excess of sales revenue over variable expenses. The break…

Answered: statement below. The point where total…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 14MCQ

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Match each item with the correct statement below.

The point where total sales revenue equals total cost	Drag answer here
Fixed expenses that cannot be directly traced to individual segments and that are unaffected by the elimination of any one segment	Drag answer here
Sales revenue minus total variable cost or price minus unit variable cost	Drag answer here
Fixed costs that are directly traceable to a given segment and, consequently, disappear if the segment is eliminated	Drag answer here
The units sold or expected to be sold or sales revenue earned or expected to be earned above the break-even volume	Drag answer here
The use of fixed costs to extract higher percentage changes in profits as sales activity changes	Drag answer here
A measure of the sensitivity of profit changes to changes in sales volume	Drag answer here
The relative combination of products (or services) being sold by an organization	Drag answer here

Operating leverage
Contribution margin
Common fixed expenses
Sales mix
Degree of operating leverage
Break-even point
Direct fixed expenses
Margin of safety

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