811. With fixed overheads at £16,000 per period, the variable cost at £7.50 per unit and each unit sold for £10, we can infer that the break-even point is:
A. 6,400 units
B. 2,134 units
C. 40,000 units
D. 1,600 units

812. Which of the following would increase the level of output that needed to be sold to reach break-even?
A. Fixed overheads increased
B. Higher sales
C. Variable unit cost decreased
D. Selling price increased

813. Contribution can be best expressed as:
A. The difference between selling price and absorption cost per unit
B. The difference between selling price and fixed cost per unit
C. The difference between selling price and variable cost per unit
D. The difference between selling price and total cost per unit

814. Which of the following is not a limitation of break-even charts?
A. Contribution per unit will always be less than the selling price per unit
B. Changes in the selling price are likely to have an effect on sales
C. It is hard to apply to firms making more than one product type
D. Not all costs can be classified as either fixed or variable

815. Given the following data:
A. 10,000 units
B. 20,000 units
C. 12,500 units
D. 8,000 units

816. Which of the following is not a method of capital investment appraisal?
A. Payback
B. Net book value
C. Net present value
D. Internal rate of return

817. An increase in the value of a sunk cost would have which of the following effects on investment appraisal calculations?
A. Have no effect
B. Lengthen the payback period
C. Reduce the NPV
D. Increase the net present value

818. Which of the following would be classified as a sunk cost?
A. Proceeds from sale of machine to be replaced
B. Scrap value of equipment at the end of the investment period
C. Cost of alternative investment
D. Market research costs for decision on whether to launch new product or not

819. Which of the following would not be an example of a capital project?
A. Costs of production for new product
B. Equipment required for new product launch
C. Extension to existing premises
D. Relocation to new premises

820. Which of the following is not a perspective of the balanced scorecard?
A. Customer
B. Internal business procedure
C. Human resource planning
D. Financial