Exam 5: Cost Volume Profit Analysis

Carter Co. sells two products, Arks and Bins. Last year, Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are: What was Carter Co.'s variable cost of E?

Rusty Co. sells two products, X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are: What was Rusty Co.'s sales mix last year?

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

The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents

Lee Industry sales are $525,000, variable costs are 53% of sales, and operating income is $19,000. What is the contribution margin ratio?

Which of the following is not an assumption underlying cost-volume-profit analysis?

For the past year, Iris Company had fixed costs of $6,708,000, a unit variable cost of $444, and a unit selling price of $600. For the coming year, no changes are expected in revenues and costs, except that a new wage contract will increase variable costs by $6 per unit. Determine the break-even sales (units) for: (a) the past year (b) the coming year.

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

Copper Hill Inc. manufactures laser printers within a relevant range of production of 70,000 to 100,000 printers per year. The following partially completed manufacturing cost schedule has been prepared: Complete the preceding cost schedule, identifying each cost by the appropriate letter (a) through (o).

Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smithson's fixed costs per month.  Do not round your intermediate calculations.

Variable costs as a percentage of sales are equal to 100% minus the contribution margin ratio.

Spice Inc.'s unit selling price is $60, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 8,000 units?

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?

Most operating decisions of management focus on a narrow range of activity called the

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

If a business sells two products, it is not possible to estimate the break-even point.

If fixed costs are $450,000 and the unit contribution margin is $50, the sales necessary to earn an operating income of $50,000 are 10,000 units.

Zeke Company sells 25,000 units at $21 per unit. Variable costs are $10 per unit, and fixed costs are $75,000. The contribution margin ratio and the unit contribution margin are

When a business sells more than one product at varying selling prices, the business's break-even point can be determined as long as the number of products does not exceed