FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 21: Cost-Volume-Profit Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

Maroon Company's contribution margin ratio is 24%.Total fixed costs are $84,000.What is Maroon's break-even point in sales dollars?

A) $20,160.
B) $110,526.
C) $350,000.
D) $240,000.
E) $84,000.

F) B) and C)
G) C) and D)

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

The contribution margin per unit expressed as a percentage of the product's selling price is the:

A) Volume variance.
B) Margin of safety.
C) Contribution margin ratio.
D) Break-even point.
E) Rate of return on sales.

F) B) and E)
G) A) and E)

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

During its most recent fiscal year,Raphael Enterprises sold 200,000 electric screwdrivers at a price of $15 each.Fixed costs amounted to $400,000 and pretax income was $600,000.What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

Contribution margin per unit is the amount by which a product's unit selling price exceeds its total variable cost per unit.

McCoy Brothers manufactures and sells two products,A and Z in the ratio of 5:2.Product A sells for $75;Z sells for $95.Variable costs for product A are $35;for Z $40.Fixed costs are $418,500.Compute the contribution margin per composite unit.

Three important assumptions in cost-volume-profit analysis is that (1)_______________ per unit is constant, (2)_____________ per unit is constant,and (3)______________ are constant in total. The first and second answers are interchangeable.The third answer must as shown.

A term describing a firm's normal range of operating activities is:

The extent,or relative size,of fixed costs in the total cost structure is known as operating leverage.

A company has fixed costs of $90,000.Its contribution margin ratio is 30% and the product sells for $75 per unit.What is the company's break-even point in dollar sales?

The contribution margin per unit is the price at which a unit must be sold in order for the company to break even.

A __________ cost is one that includes both fixed and variable cost components;a ______________ cost is one that reflects a step pattern. Answers must appear in this order.

During a recent fiscal year,Creek Company reported pretax income of $125,000,a contribution margin ratio of 25% and total contribution margin of $400,000.Total variable costs must have been:

At Midland Company's break-even point of 9,000 units,fixed costs are $180,000 and variable costs are $540,000 in total.The unit sales price is:

Gladstone Co.has expected sales of $326,000 for the upcoming month and its monthly break even sales are $300,000.What is the margin of safety as a percent of sales,rounded to the nearest whole percent?

Alvarez Company's break-even point in units is 1,000.The sales price per unit is $10 and variable cost per unit is $7.If the company sells 2,500 units,what will net income be?

A method that estimates cost behavior by using just the highest and lowest volume levels is called the:

A product sells for $200 per unit,and its variable costs per unit are $130.The fixed costs are $420,000.If the firm wants to earn $35,000 pretax income,how many units must be sold?

Curvilinear costs always increase:

A cost that changes in proportion to changes in volume of activity is a(n) :

A company's product sells at $12 per unit and has a $5 per unit variable cost.The company's total fixed costs are $98,000.The contribution margin per unit is: