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

Reynold's Grocery has fixed costs of $350,000, the unit selling price is $29, and the unit variable costs are $20. What are the break-even sales in units (rounded to a whole number) if the variable costs are decreased by $4?

A) 26,923 units
B) 12,069 units
C) 21,875 units
D) 38,889 units

E) All of the above
F) None of the above

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

If fixed costs are $46,800, the unit selling price is $42, and the unit variable costs are $24, what are the break-even sales (units) if the variable costs are decreased by $2?

A) 2,127
B) 1,114
C) 2,340
D) 1,950

E) C) and D)
F) A) and B)

Correct Answer

verified

Show Answer

Question 73

True/False

Review LaterAdd Note

The relevant range is useful for analyzing cost behavior for management decision-making purposes.

Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000?

If employees accept a wage contract that decreases the unit contribution margin, the break-even point will decrease.

Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is $60 per unit, and fixed costs are $270,000.?Determine the (a) unit sales price and (b) break-even point in sales units if the company desires a target profit of $36,000. If required, round answer to nearest whole number.

If direct materials cost per unit decreases, the amount of sales necessary to earn a desired amount of profit will decrease.

Trail Bikes, Inc. sells three Deluxe bikes for every seven Standard bikes. The Deluxe bike sells for $1,800 and has variable costs of $1,200. The Standard bike sells for $600 and has variable costs of $200.? Required (a) If Trail Bikes has fixed costs that total $1,702,000, how many bikes must be sold in order for the company tobreak even? (b) How many of these bikes will be Deluxe bikes, and how many will be Standard bikes?

Which of the following is not an example of a cost that varies in total as the number of units produced changes?

When Isaiah Company has fixed costs of $120,000 and the contribution margin is $30, the break-even point is

If sales are $425,000, variable costs are 62% of sales, and operating income is $50,000, what is the contribution margin ratio?

Direct materials and direct labor costs are examples of variable costs of production.

Which of the following describes the behavior of the fixed cost per unit?

Which of the following is not an example of a cost that varies in total as the number of units produced changes?

In an absorption costing income statement, the manufacturing margin is the excess of sales over the variable cost of goods sold.

Rental charges of $40,000 per year plus $3 for each machine hour over 18,000 hours are an example of a fixed cost.

The manufacturing cost of Calico Industries for three months of the year are provided below.​ Using the high-low method, the variable cost per unit and the total fixed costs are

Match the following terms with their definitions. -The excess of sales revenues over variable costs

The data required for determining the break-even point for a business are the total estimated fixed costs for a period, stated as a percentage of net sales.

In order to choose the proper activity base for a cost, a managerial accountant must be familiar with the operations of the entity.