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 51

Multiple Choice

Review LaterAdd Note

Review Later

Match the following terms (a-e) with their definitions. -Indicates the possible decrease in sales that may occur before operating loss results

A) Profit-volume chart
B) Cost-volume-profit chart
C) Sales mix
D) Operating leverage
E) Margin of safety

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

Correct Answer

verified

Show Answer

Question 52

Essay

Review LaterAdd Note

Review Later

Consider the following: ?Variable cost as a percentage of sales = 60% Unit variable cost = $30 Fixed costs = $200,000 ?What is the break-even point in units? If required, round answer to nearest whole number.

Correct Answer

verified

$30/60% = $50 selling price?If variable ...

View Answer

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

Use this information for Timmer Corporation to answer the questions that follow. Timmer Corporation just started business in January. There were no beginning inventories. During the year, it manufactured 12,000 units of product and sold 10,000 units. The selling price of each unit was $20. Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $2 per unit. Fixed manufacturing costs were $24,000, and fixed selling and administrative costs were $6,000. -What would Timmer's net income be for the year using variable costing?

Match the following terms (a-e) with their definitions. -Plots only the difference between total sales and total costs

If fixed costs are $500,000, the unit selling price is $55, and the unit variable costs are $30, what are the break-even sales (units) if fixed costs are increased by $80,000?

Safari Co. sells two products, orks and zins. Last year, Safari sold 21,000 units of orks and 14,000 units of zins. Related data are as follows:? ?Calculate the following: a. Safari Co.'s sales mix b. Safari Co.'s unit selling price of E c. Safari Co.'s unit contribution margin of E d. Safari Co.'s break-even point assuming that last year's fixed costs were $160,000

Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $20 per unit, while fixed costs are $85,000. Determine the (a) break-even point in sales units and (b) break-even point in sales units if the selling price increased to $80 per unit. Round your answer to the nearest whole number.

If the property tax rates are increased, this change in fixed costs will result in a decrease in the break-even point.

If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the operating leverage?

The fixed cost per unit varies with changes in the level of activity.

Break-even analysis is one type of cost-volume-profit analysis.

If fixed costs are $600,000 and the unit contribution margin is $40, what is the break-even point if fixed costs are increased by $90,000?

For the coming year, River Company estimates fixed costs at $109,000, the unit variable cost at $21, and the unit selling price at $85. Determine (a) the break-even point in units of sales, (b) the unit sales required to realize operating income of $150,000 and (c) the probable operating income if sales total $500,000.?Round units to the nearest whole number and percentage to one decimal place.

If fixed costs are $1,200,000, the unit selling price is $240, and the unit variable costs are $110, what is the amount of sales in units (rounded to a whole number) required to realize an operating income of $200,000?

Total variable costs change as the level of activity changes.

The dollars available from each unit of sales to cover fixed cost and profit are the unit variable cost.

Cost-volume-profit analysis cannot be used if which of the following occurs?

Steven Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below.? The sales mix for products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. If required, round answer to nearest whole number.

Assuming that last year's fixed costs totaled $675,000, what was Rusty Co.'s break-even point in units?

A business had a margin of safety ratio of 20%, variable costs of 75% of sales, fixed costs of $240,000, a break-even point of $960,000, and operating income of $60,000 for the current year. Calculate the current year's sales.