Exam 17: Cost-Volume-Profit

Ponszko Nursery used high-low data from June and July to determine its variable cost of $12 per unit. Additional information follows: Month Units produced Total costs June 2,000 \ 32,000 July 1,000 20,000 If Ponszko's produces 2,300 units in August, how much is its total cost expected to be?

Two costs at Bradshaw Company appear below for specific months of operation. Month Amount Units Produced Delivery costs September \ 40,000 40,000 October 55,000 60,000 Utilities September \ 84,000 40,000 October 126,000 60,000 Which type of costs are these?

Which one of the following is not an assumption of CVP analysis?

Select the correct statement concerning the cost-volume-profit graph at right:

A cost which remains constant per unit at various levels of activity is a

The break-even point is where total sales equal total variable costs.

In applying the high-low method, which months are relevant? Month Miles Total Cost January 80,000 \ 192,000 February 50,000 160,000 March 70,000 188,000 April 90,000 260,000

In CVP analysis, the term "cost"

Contribution margin is the amount of revenues remaining after deducting cost of goods sold.

O'Malley Company sells 100,000 units for $13 a unit. Fixed costs are $350,000 and net income is $250,000. What should be reported as variable expenses in the CVP income statement?

The margin of safety is the difference between contribution margin and fixed costs.

If volume increases, all costs will increase.

The break-even point cannot be determined by

Bruno & Court is a nonprofit organization that captures stray deer bewildered within residential communities. Fixed costs are $20,000. The variable cost of capturing each deer is $10 each. Bruno & Court is funded by a local philanthropy in the amount of $64,000 for 2016. How many deer can Bruno & Court capture during 2016?

When applying the high-low method, the variable cost element of a mixed cost is calculated before the fixed cost element.

The following monthly data are available for Seasons Company which produces only one product: Selling price per unit, $42; Unit variable expenses, $14; Total fixed expenses, $42,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June?