PROFIT ANALYSIS (CVP) LATEST
2026/2027 ACTUAL EXAM QUESTIONS
WITH CORRECT ANSWERS 100%
VERIFIED GRADED A+
contributionmformatmincomemstatementm-mCORRECTmANSWERm(salesm-
mvarmexpensesm=mcontributionmmarginm-mfixmexpensesm=mnetmincome)
fixedmexpensesm-
mCORRECTmANSWERmExpensesmthatmdomnotmchangem(inmtotal),msuchmasmautominsurancemormrent.
variablemexpensesm-
mCORRECTmANSWERmvarymfrommmonthmtommonthmandmaremconstantmonmamper-
unitmbasismthusmcontributionmmarginmpermunitmismstable
Whatmwouldmbemthemrevisedmnetmoperatingmincomempermmonthmifmthemsalesmvolumemincreasesmby
m100munits?m-mCORRECTmANSWERmvariablemexpensesmaremconstantmonmamper-
unitmbasismthusmcontributionmmarginmpermunitmismstablem---
>mifmwemaremoperatingmwithinmthemrelevantmrangemsomifmwemincreasemsalesmbym100munitsmwithmamC
Mmofm$15mpermunitmwemshouldmanticipatemthatmnetmincomemwillmincreasembym$1,500mifmwemaremop
eratingmwithinmthemrelevantmrangemsomifmwemincreasemsalesmbym100munitsmwithmamCMmofm$15mperm
unitmwemshouldmanticipatemthatmnetmincomemwillmincreasembym$1,500
Whatmwouldmbemthemrevisedmnetmoperatingmincomempermmonthmifmthemsalesmvolumemism9,000muni
ts?m-mCORRECTmANSWERm9000munitsmxmCMmofm$15m=m$135,000m-
mfixmcostsm$135,000m=mNImofm$0...BREAKEVENmISmSALESmVOLUMEmOFm9,000mUNITSmORmSALESmAM
OUNTmOFm$315,000.
break-evenmpointm-
mCORRECTmANSWERmthemlevelmofmoperationsminmeithermsalesmdollarsmormunitsmthatmaremneededmto