Question 32: The excess of sales over variable cost is the contribution margin, which helps cover fixed costs and contribute to profit.

Here are the answers to your questions: Question 32: The excess of sales over variable cost is the contribution margin, which helps cover fixed costs and contribute to profit. B. contribution Question 33: Break-even analysis assumes that, for the relevant range of activity, certain costs behave predictably. Specifically, variable cost per unit is assumed to remain constant. D. variable cost per unit remains constant. Question 34: A cost unit is a unit of product or service for which costs are measured. In the transportation sector, costs are often measured per passenger carried. B. passenger Use the following information to answer questions 35 to 37: Fixed cost: Production = GH¢ 180,000, Selling = GH¢ 20,000 Total Fixed Cost = GH¢ 180,000 + GH¢ 20,000 = GH¢ 200,000 Selling price/unit = GH¢ 100 Variable cost/unit = GH¢ 80 Question 35: What is the break-even point in units? Step 1: Calculate the contribution per unit. The contribution per unit is the selling price per unit minus the variable cost per unit. Contribution per unit = Selling price per unit - Variable cost per unit Contribution per unit = GH¢ 100 - GH¢ 80 = GH¢ 20 Step 2: Calculate the break-even point in units. The break-even point in units is the total fixed costs divided by the contribution per unit. Break-even point (units) = Total Fixed CostContribution per unit Break-even point (units) = GH¢ 200,000GH¢ 20/unit = 10,000 units C. 10,000 units Question 36: Determine the contribution to sales ratio. Step 1: Calculate the contribution to sales ratio. The contribution to sales ratio (or P/V ratio) is the contribution per unit divided by the selling price per unit. Contribution to sales ratio = Contribution per unitSelling price per unit Contribution to sales ratio = GH¢ 20GH¢ 100 = (1)/(5) This can be expressed as a ratio of 1:5. B. 1:5 Question 37: A desired sales to achieve a target profit of GH¢ 6,000 is Step 1: Calculate the number of units needed to achieve the target profit. The number of units required to achieve a target profit is calculated by adding the target profit to the total fixed costs and then dividing by the contribution per unit. Units for target profit = Total Fixed Cost + Target ProfitContribution per unit Units for target profit = GH¢ 200,000 + GH¢ 6,000GH¢ 20/unit Units for target profit = GH¢ 206,000GH¢ 20/unit = 10,300 units Assuming the "GH¢" in option D is a typo and it refers to units. D. GH¢ 10,300 (interpreted as 10,300 units) Question 38: The procedure for budget preparation typically starts with setting clear objectives that the budget aims to achieve. D. identifying objectives to achieve. Question 39: A limiting factor is a constraint that restricts an organization's activities. In capital expenditure budgeting, the most common limiting factor is the availability of funds. D. non-availability of funds. That's 2 down. 3 left today — send the next one.