LeBlanc Manufacturing has the following product information available: $\begin{array}{ll} \text { Sales price } & \$ 60 \text { per unit } \\ \text { Variable costs } & \$ 20 \text { per unit } \\ \text { Fixed costs } & \$ 50\text { 000 } \end{array}$ If LeBlanc is in the 30% tax bracket,how many units need to be sold in order to earn an after-tax target profit of $490 000?

A) 17 500 B) 18 750 C) 19 286 D) 9 450 A) 17 500 B) 18 750 C) 19 286 D) 9 450

Jazz Products has the following information available for the month of March: $\begin{array}{lr} \text { Sales (4000 units) } & \$ 40000 \\ \text { Variable costs } & 18000 \\ \text { Fixed costs } & 5000 \\ \text { income } & \$ 17000 \end{array}$ The company's manager is considering several options to increase net income.By what amount do sales dollars need to increase in order for net income to increase to $25 000?

A) $14 545 B) $25 000 C) $ 3000 D) $18 820 A) $14 545 B) $25 000 C) $ 3000 D) $18 820

Harrison Manufacturing Harrison Manufacturing has the following product information available: $\begin{array}{ll} \text { Sales price } & \$ 50 \text { per unit } \\ \text { Variable costs } & \$ 26 \text { per unit } \\ \text { Fixed costs } & \$ 87600 \end{array}$ -How many units need to be sold in order to earn a target profit of $175 000?

A) 10 942 B) 7292 C) 3642 D) 5252 A) 10 942 B) 7292 C) 3642 D) 5252

Refer to the Joe’s Coffee House information below. Joe’s Coffee House Joe’s Coffee House has the following information available for the month of July: $\begin{array}{lr} \text { Sales }(2500 \text { cups) } & \$ 7500 \\ \text { Variable costs } & 3250 \\ \text { Fixed costs } & 4000 \\ \text { Net Income } & \$ \quad 250 \end{array}$ -If Joe's sells 500 more cups of coffee per month,net income will:

A) increase by $850. B) increase by $100. C) increase by $150. D) increase by $1500. A) increase by $850. B) increase by $100. C) increase by $150. D) increase by $1500.

Blinson Manufacturing has the following product information available: $\begin{array}{ll} \text { Sales price } & \$75 \text { per unit } \\ \text { Variable costs } & \$ 25 \text { per unit } \\ \text { Before-tax profit }& \$ 180 \text { 000 } \end{array}$ If Blinson has calculated that it needs to sell 20 000 units in order to earn an after-tax target profit of $126 000,what were Blinson's fixed costs?

A) $ 54 000 B) $1 180 000 C) $ 820 000 D) $ 874 000 A) $ 54 000 B) $1 180 000 C) $ 820 000 D) $ 874 000

Carolina Products Carolina Products sells a unique item with the following information available: $\begin{array}{ll} \text { Sales price } & \$ 40 \text { per unit } \\ \text { Variable costs } & \$ 12 \text { per unit } \\ \text { Fixed Costs } & \$ 2 \text { per unit } \\ \text { Units produced and sold } & 2000 \end{array}$ -What is the contribution margin per unit?

A) $26 B) $38 C) $52 D) $28 A) $26 B) $38 C) $52 D) $28

Exam 9: Cost-Volume-Profit Analysis

Eason Products has the following product information available: Sales price \ 35 per unit Variable costs \ 10 per unit Fixed costs \ 90000 Required: If Eason is in the 40% tax bracket,how many units need to be sold in order to earn an after-tax target profit of $450 000?

(Essay)

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(83)

Question 41

Charlie’s Hotdog Stand Charlie’s Hotdog Stand sells hotdogs for $2.50 each. The variable costs per hotdog are $.50. Charlie’s fixed costs are currently $800 per month. Charlie is considering expanding his business to three hotdog stands which will increase fixed costs per month by $1200. -If Charlie does expand his business to three stands,how many additional hotdogs will need to be sold per month in order to break even?

(Multiple Choice)

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Question 42

All else being equal,which of the following would not cause the contribution margin to decrease?

(Multiple Choice)

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Question 43

If a company has a positive contribution margin but net income is low or negative,what are some ways of increasing net income?

(Multiple Choice)

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Question 44

Which of the following statements is correct as it relates to a company that sells multiple products?

(Multiple Choice)

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Question 45

The contribution margin income statement is structured in such a way as to emphasise:

(Multiple Choice)

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Question 46

LeBlanc Manufacturing has the following product information available: Sales price \ 60 per unit Variable costs \ 20 per unit Fixed costs \ 50 000 If LeBlanc is in the 30% tax bracket,how many units need to be sold in order to earn an after-tax target profit of $490 000?

(Multiple Choice)

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(86)

Question 47

When using CVP analysis,why is it important to consider qualitative factors? Provide one example of a qualitative factor and explain how it might affect a decision.

(Essay)

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Question 48

Jazz Products has the following information available for the month of March: Sales (4000 units) \ 40000 Variable costs 18000 Fixed costs 5000 income \ 17000 The company's manager is considering several options to increase net income.By what amount do sales dollars need to increase in order for net income to increase to $25 000?

(Multiple Choice)

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Question 49

When calculating the break-even point in a multiproduct environment,which of the following pieces of information would not be relevant?

(Multiple Choice)

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Question 50

Harrison Manufacturing Harrison Manufacturing has the following product information available: Sales price \ 50 per unit Variable costs \ 26 per unit Fixed costs \ 87600 -How many units need to be sold in order to earn a target profit of $175 000?

(Multiple Choice)

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Question 51

Assuming a company has net income,which of the following statements is true regarding the contribution margin per unit?

(Multiple Choice)

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Question 52

When preparing a traditional income statement,it is necessary to break down costs into what two categories?

(Multiple Choice)

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(68)

Question 53

Refer to the Joe’s Coffee House information below. Joe’s Coffee House Joe’s Coffee House has the following information available for the month of July: Sales (2500 cups) \ 7500 Variable costs 3250 Fixed costs 4000 Net Income \ 250 -If Joe's sells 500 more cups of coffee per month,net income will:

(Multiple Choice)

4.8/5

(68)

Question 54

Blinson Manufacturing has the following product information available: Sales price \7 5 per unit Variable costs \ 25 per unit Before-tax profit \ 180 000 If Blinson has calculated that it needs to sell 20 000 units in order to earn an after-tax target profit of $126 000,what were Blinson's fixed costs?

(Multiple Choice)

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Question 55

How is contribution margin ratio computed?

(Essay)

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Question 56

Carolina Products Carolina Products sells a unique item with the following information available: Sales price \ 40 per unit Variable costs \ 12 per unit Fixed Costs \ 2 per unit Units produced and sold 2000 -What is the contribution margin per unit?

(Multiple Choice)

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(70)

Question 57

The following information is available for the Blue and Red Companies for 2009 $\begin{array}{lcc}&\underline{\text { Blue} }& \underline{\text { Red }}\\ \text { Sales (200 000 units) } &\$1800000&\$1800000\\ \text { Variable costs } &\underline{800000}&\underline{1200000}\\ \text {Contribution margin } &1000000&600000\\ \text { Fixed costs } &\underline{500000\$}&\underline{100000\$}\\ \text { Net income } &\underline{500000}&\underline{500000}\\\end{array}$ Required: A. Compute the pperating leverage for each company and explan what qperating leverage measures. B. If both companies exiderience a $20 \%$ increase in sales volume, will they continue to have the same net income? Why ar why not? Explan your answer with respect to each company's operating leverage.

(Essay)

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Question 58

Grisham Inc.wishes to have an after-tax profit of $400 000.If Grisham's tax rate is 35%,what is their before-tax profit?

(Multiple Choice)

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Question 59

How many total number of products need to be sold in order for the company to break even?

(Multiple Choice)

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(76)

Question 60

Eason Products has the following product information available: Sales price \ 35 per unit Variable costs \ 10 per unit Fixed costs \ 90000 Required: If Eason is in the 40% tax bracket,how many units need to be sold in order to earn an after-tax target profit of $450 000?

All else being equal,which of the following would not cause the contribution margin to decrease?

If a company has a positive contribution margin but net income is low or negative,what are some ways of increasing net income?

Which of the following statements is correct as it relates to a company that sells multiple products?

The contribution margin income statement is structured in such a way as to emphasise:

LeBlanc Manufacturing has the following product information available: Sales price \ 60 per unit Variable costs \ 20 per unit Fixed costs \ 50 000 If LeBlanc is in the 30% tax bracket,how many units need to be sold in order to earn an after-tax target profit of $490 000?

When using CVP analysis,why is it important to consider qualitative factors? Provide one example of a qualitative factor and explain how it might affect a decision.

When calculating the break-even point in a multiproduct environment,which of the following pieces of information would not be relevant?

Harrison Manufacturing Harrison Manufacturing has the following product information available: Sales price \ 50 per unit Variable costs \ 26 per unit Fixed costs \ 87600 -How many units need to be sold in order to earn a target profit of $175 000?

Assuming a company has net income,which of the following statements is true regarding the contribution margin per unit?

When preparing a traditional income statement,it is necessary to break down costs into what two categories?

How is contribution margin ratio computed?

Carolina Products Carolina Products sells a unique item with the following information available: Sales price \ 40 per unit Variable costs \ 12 per unit Fixed Costs \ 2 per unit Units produced and sold 2000 -What is the contribution margin per unit?

Grisham Inc.wishes to have an after-tax profit of $400 000.If Grisham's tax rate is 35%,what is their before-tax profit?

How many total number of products need to be sold in order for the company to break even?

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, cost Terminology and Cost Flows

Cost Behaviour

Job Costing and Overhead Costing Systems

Process Costing Systems

Service and Operations Costing

Departmental Overhead Costing

Activity-Based Costing

Relevant Costs and Product Planning Decisions

Long-Term Capital Investmentdecisions

Fixed and Rolling Budgets for Planning and Decision Making

Management Accounting for Cost Control and Performance Evaluation Flexible Budgets and Variance Analysis

Decentralisation and Modern Performance Management Systems the Balanced Scorecard

Accounting for Sustainability Social Reporting,environmental Reporting and Management Accounting

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