Exam 20: Cost-Volume-Profit Analysis

Assume that Corn Co. sold 8,000 units of Product A and 2,000 units of Product B during the past year. The unit contribution margins for Products A and B are $30 and $60, respectively. Corn has fixed costs of $378,000. The break-even point in units is

Match each of the following costs of producing T-shirts with the appropriate classification (a-c). -Thread A)Variable cost B)Fixed cost C)Mixed cost

Which of the following statements is true regarding fixed and variable costs?

The difference between the current sales revenue and the sales at the break-even point is called the

The manufacturing costs of Carrie Industries for the first three months of the year are provided below. Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed cost.

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

Variable costs are costs that remain constant in total dollar amount as the level of activity changes.

If fixed costs are $850,000 and the unit contribution margin is $50, profit is zero when 15,000 units are sold.

Match each of the following costs with the graph (a-e) that best portrays its cost behavior as the number of units produced and sold increases. -Rent on warehouse of $12,000 per month A)Graph 1 B)Graph 2 C)Graph 3 D)Graph 4 E)Graph 5

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

Rocky Company reports the following data: Sales $800,000 Variable costs 300,000 Fixed costs 120,000 Rocky Company's operating leverage is

If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, the contribution margin ratio is

Which of the following types of cost is shown in the cost data below?

Match each of the following costs with the graph (a-e) that best portrays its cost behavior as the number of units produced and sold increases. -Per-unit straight-line depreciation costs A)Graph 1 B)Graph 2 C)Graph 3 D)Graph 4 E)Graph 5

If the volume of sales is $6,000,000 and sales at the break-even point amount to $4,800,000, the margin of safety is 25%.

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

The ratio that indicates the percentage of each sales dollar available to cover the fixed costs and to provide operating income is termed the contribution margin ratio.

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

Match each of the following costs of producing T-shirts with the appropriate classification (a-c). -Ink used for screen printing A)Variable cost B)Fixed cost C)Mixed cost

If fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50, the old and new break-even sales (units), respectively, if the unit selling price increases by $10 are