The Allen Company had the following income statement for the month of July: $\begin{array}{c} \text { Allen Company}\\ \text { Income Statement}\\ \text { For the Month of July}\\\\ \begin{array}{lrr} \text { Sales }(\$ 60 \times 10,000) & & \$ 600,000 \\ \text { Cost of goods sold: } & & \\ \text { Direct materials }(\$ 12 \times 10,000) & \$ 120,000 \\ \text { Direct labour }(\$ 9 \times 10,000)& 90,000 & \\ \text { Variable factory overhead }(\$ 7.50 \times 10,000)& 75,000 \\ \text { Fixed factory overhead } & \underline{120,000} & \underline{405,000} \\ \text { Gross profit } & & \$ 195,000 \\ \text { Selling and administrative expenses: } \\ \text { Variable }(\$ 1.50 \times 10,000) & \$ 15,000 & \\ \text { Fixed }& \underline{90,000} & \underline{105,000} \\ \text { Operating income }& & \$ 90,000 \end{array}\end{array}$ - What is Allen Company's break-even sales volume?

A) 7,000 units B) 10,000 units C) 11,211 units D) 20,000 units A) 7,000 units B) 10,000 units C) 11,211 units D) 20,000 units

The Kringel Company provides the following information: $\begin{array}{lr} \text { Sales }(200,000 \text { units) } & \$ 500,000 \\ \text { Manufacturing costs: } & \\ \text { Variable } &170,000 \\ \text { Fixed } & 30,000\\ \text { Selling and administrative costs: } & \\ \text { Variable } & 80,000 \\ \text { Fixed } &20,000 \end{array}$ What is the break-even point in sales dollars for Kringel?

A) $25,000 B) $83,333 C) $100,000 D) $250,000 A) $25,000 B) $83,333 C) $100,000 D) $250,000

The Allen Company had the following income statement for the month of July: $\begin{array}{c} \text { Allen Company}\\ \text { Income Statement}\\ \text { For the Month of July}\\\\ \begin{array}{lrr} \text { Sales }(\$ 60 \times 10,000) & & \$ 600,000 \\ \text { Cost of goods sold: } & & \\ \text { Direct materials }(\$ 12 \times 10,000) & \$ 120,000 \\ \text { Direct labour }(\$ 9 \times 10,000)& 90,000 & \\ \text { Variable factory overhead }(\$ 7.50 \times 10,000)& 75,000 \\ \text { Fixed factory overhead } & \underline{120,000} & \underline{405,000} \\ \text { Gross profit } & & \$ 195,000 \\ \text { Selling and administrative expenses: } \\ \text { Variable }(\$ 1.50 \times 10,000) & \$ 15,000 & \\ \text { Fixed }& \underline{90,000} & \underline{105,000} \\ \text { Operating income }& & \$ 90,000 \end{array}\end{array}$ If the monthly sales volume increases by 450 units,by how much will Allen Company's monthly profits increase?

A) $1,282.50 B) $9,450.00 C) $13,500.00 D) $14,175.00 A) $1,282.50 B) $9,450.00 C) $13,500.00 D) $14,175.00

The Kringel Company provides the following information: $\begin{array}{lr} \text { Sales }(200,000 \text { units) } & \$ 500,000 \\ \text { Manufacturing costs: } & \\ \text { Variable } & 170,000\\ \text { Fixed } &30,000 \\ \text { Selling and administrative costs: } & \\ \text { Variable } &80,000 \\ \text { Fixed } & 20,000 \end{array}$ -Refer to the figure.What is the net income for Kringel?

A) $50,000 B) $200,000 C) $250,000 D) $500,000 A) $50,000 B) $200,000 C) $250,000 D) $500,000

Assume the following cost behaviour data for Portrait Company: \[\begin{array} { l l l } \text { Sales price } & \$ 18.00 & \text { per unit } \\ \text { Variable costs } & \$ 13.50 & \text { per unit } \\ \text { Fixed costs } & \$ 22,500 & \\ \text { Tax rate } & 40\% & \end{array}\] -What volume of sales dollars is required to earn a before-tax income of $27,000?

A) $90,000 B) $180,000 C) $198,000 D) $270,000 A) $90,000 B) $180,000 C) $198,000 D) $270,000

The Kringel Company provides the following information: $\begin{array}{lr} \text { Sales }(200,000 \text { units) } & \$ 500,000 \\ \text { Manufacturing costs: } & \\ \text { Variable } & 170,000\\ \text { Fixed } &30,000 \\ \text { Selling and administrative costs: } & \\ \text { Variable } &80,000 \\ \text { Fixed } & 20,000 \end{array}$ -Refer to the figure.What is the variable product cost per unit for Kringel?

A) $0.40 B) $0.85 C) $1.25 D) $2.50 A) $0.40 B) $0.85 C) $1.25 D) $2.50

Thomas Company had the following information: $\begin{array}{lcc} \underline{\text { Activity Driver}}& \underline{\text { Unit Variable Cost }}&\underline{\text { Level of Activity Driver}}\\ \text { Units sold } & \$ 20 & -- \\ \text { Setups } & 1,000 & 80 \\ \text { Engineering hours } & 60 &2,000 \\ \text { Other data: } & & \end{array}$ $\begin{array}{lc} \text { Total fixed costs (traditional) } & \$ 800,000 \\ \text { Total fixed costs (ABC) } & \$ 400,000 \\ \text { Unit selling price } & \$ 40 \end{array}$ - What is the break-even point in units using ABC?

A) 15,000 units B) 30,000 units C) 45,000 units D) 75,000 units A) 15,000 units B) 30,000 units C) 45,000 units D) 75,000 units

The Kringel Company provides the following information: $\begin{array}{lr} \text { Sales }(200,000 \text { units) } & \$ 500,000 \\ \text { Manufacturing costs: } & \\ \text { Variable } & 170,000\\ \text { Fixed } &30,000 \\ \text { Selling and administrative costs: } & \\ \text { Variable } &80,000 \\ \text { Fixed } & 20,000 \end{array}$ -Refer to the figure.What is the contribution margin per unit for Kringel?

A) $0.85 B) $1.25 C) $1.65 D) $2.50 A) $0.85 B) $1.25 C) $1.65 D) $2.50

Malone Printing Company projected the following information for next year: $\begin{array}{lr} \text { Selling price per unit } & \$ 75.00 \\ \text { Contribution margin per unit } & \$ 30.00 \\ \text { Total fixed costs } & \$ 120,000 \\ \text { Tax rate } & 40 \% \end{array}$ How many units must be sold to obtain an after-tax profit of $67,500?

A) 3,750 units B) 5,167 units C) 5,625 units D) 7,750 units A) 3,750 units B) 5,167 units C) 5,625 units D) 7,750 units

Exam 3: Cost-Volume-Profit Analysis

The Allen Company had the following income statement for the month of July: Allen Company Income Statement For the Month of July Sales (\ 60\times10,000) \ 600,000 Cost of goods sold: Direct materials (\ 12\times10,000) \ 120,000 Direct labour (\ 9\times10,000) 90,000 Variable factory overhead (\ 7.50\times10,000) 75,000 Fixed factory overhead Gross profit \ 195,000 Selling and administrative expenses: Variable (\ 1.50\times10,000) \ 15,000 Fixed Operating income \ 90,000 - What is Allen Company's break-even sales volume?

(Multiple Choice)

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Question 81

The following diagram is a cost-volume-profit graph for a manufacturing company: What is the formula to determine the Y-axis value ($)at point D on the graph?

(Multiple Choice)

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Question 82

The Kringel Company provides the following information: Sales (200,000 units) \ 500,000 Manufacturing costs: Variable 170,000 Fixed 30,000 Selling and administrative costs: Variable 80,000 Fixed 20,000 What is the break-even point in sales dollars for Kringel?

(Multiple Choice)

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Question 83

What happens when a company sells more units than the break-even point?

(Multiple Choice)

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Question 84

The Allen Company had the following income statement for the month of July: Allen Company Income Statement For the Month of July Sales (\ 60\times10,000) \ 600,000 Cost of goods sold: Direct materials (\ 12\times10,000) \ 120,000 Direct labour (\ 9\times10,000) 90,000 Variable factory overhead (\ 7.50\times10,000) 75,000 Fixed factory overhead Gross profit \ 195,000 Selling and administrative expenses: Variable (\ 1.50\times10,000) \ 15,000 Fixed Operating income \ 90,000 If the monthly sales volume increases by 450 units,by how much will Allen Company's monthly profits increase?

(Multiple Choice)

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Question 85

The Kringel Company provides the following information: Sales (200,000 units) \ 500,000 Manufacturing costs: Variable 170,000 Fixed 30,000 Selling and administrative costs: Variable 80,000 Fixed 20,000 -Refer to the figure.What is the net income for Kringel?

(Multiple Choice)

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Question 86

Assume the following cost behaviour data for Portrait Company: Sales price \ 18.00 per unit Variable costs \ 13.50 per unit Fixed costs \ 22,500 Tax rate 40\% -What volume of sales dollars is required to earn a before-tax income of $27,000?

(Multiple Choice)

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Question 87

The Kringel Company provides the following information: Sales (200,000 units) \ 500,000 Manufacturing costs: Variable 170,000 Fixed 30,000 Selling and administrative costs: Variable 80,000 Fixed 20,000 -Refer to the figure.What is the variable product cost per unit for Kringel?

(Multiple Choice)

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Question 88

Thomas Company had the following information: Units sold \ 20 -- Setups 1,000 80 Engineering hours 60 2,000 Other data: Total fixed costs (traditional) \ 800,000 Total fixed costs (ABC) \ 400,000 Unit selling price \ 40 - What is the break-even point in units using ABC?

(Multiple Choice)

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Question 89

The Kringel Company provides the following information: Sales (200,000 units) \ 500,000 Manufacturing costs: Variable 170,000 Fixed 30,000 Selling and administrative costs: Variable 80,000 Fixed 20,000 -Refer to the figure.What is the contribution margin per unit for Kringel?

(Multiple Choice)

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(81)

Question 90

Malone Printing Company projected the following information for next year: Selling price per unit \ 75.00 Contribution margin per unit \ 30.00 Total fixed costs \ 120,000 Tax rate 40\% How many units must be sold to obtain an after-tax profit of $67,500?

(Multiple Choice)

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Question 91

On a profit-volume graph,where does the profit line intersect the horizontal axis?

(Multiple Choice)

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Question 92

Using cost-volume-profit analysis,what would be the result of a 20 percent reduction in variable costs?

(Multiple Choice)

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Question 93

What is the formula used to calculate the contribution margin ratio?

(Multiple Choice)

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Question 94

Camp Gordon has annual fixed operating costs of $150,000 and variable costs of $550 per camper.Total fees charged to campers amount to $500 each.The camp expects 350 campers next summer.Projected government grants are $95,000.How much must Camp Gordon raise from other sources to break even?

(Multiple Choice)

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Question 95

What would be the result of a decrease in the sales price in the basic cost-volume-profit model?

(Multiple Choice)

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Question 96

What is represented in a cost-volume-profit graph ?

(Multiple Choice)

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Question 97

How is total contribution margin calculated?

(Multiple Choice)

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Question 98

What is the contribution margin at the break-even point?

(Multiple Choice)

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Question 99

What is the break-even point?

(Multiple Choice)

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Question 100

The following diagram is a cost-volume-profit graph for a manufacturing company: What is the formula to determine the Y-axis value ($)at point D on the graph?

The Kringel Company provides the following information: Sales (200,000 units) \ 500,000 Manufacturing costs: Variable 170,000 Fixed 30,000 Selling and administrative costs: Variable 80,000 Fixed 20,000 What is the break-even point in sales dollars for Kringel?

What happens when a company sells more units than the break-even point?

The Kringel Company provides the following information: Sales (200,000 units) \ 500,000 Manufacturing costs: Variable 170,000 Fixed 30,000 Selling and administrative costs: Variable 80,000 Fixed 20,000 -Refer to the figure.What is the net income for Kringel?

Assume the following cost behaviour data for Portrait Company: Sales price \ 18.00 per unit Variable costs \ 13.50 per unit Fixed costs \ 22,500 Tax rate 40\% -What volume of sales dollars is required to earn a before-tax income of $27,000?

The Kringel Company provides the following information: Sales (200,000 units) \ 500,000 Manufacturing costs: Variable 170,000 Fixed 30,000 Selling and administrative costs: Variable 80,000 Fixed 20,000 -Refer to the figure.What is the variable product cost per unit for Kringel?

Thomas Company had the following information: Units sold \ 20 -- Setups 1,000 80 Engineering hours 60 2,000 Other data: Total fixed costs (traditional) \ 800,000 Total fixed costs (ABC) \ 400,000 Unit selling price \ 40 - What is the break-even point in units using ABC?

The Kringel Company provides the following information: Sales (200,000 units) \ 500,000 Manufacturing costs: Variable 170,000 Fixed 30,000 Selling and administrative costs: Variable 80,000 Fixed 20,000 -Refer to the figure.What is the contribution margin per unit for Kringel?

Malone Printing Company projected the following information for next year: Selling price per unit \ 75.00 Contribution margin per unit \ 30.00 Total fixed costs \ 120,000 Tax rate 40\% How many units must be sold to obtain an after-tax profit of $67,500?

On a profit-volume graph,where does the profit line intersect the horizontal axis?

Using cost-volume-profit analysis,what would be the result of a 20 percent reduction in variable costs?

What is the formula used to calculate the contribution margin ratio?

Camp Gordon has annual fixed operating costs of $150,000 and variable costs of $550 per camper.Total fees charged to campers amount to $500 each.The camp expects 350 campers next summer.Projected government grants are $95,000.How much must Camp Gordon raise from other sources to break even?

What would be the result of a decrease in the sales price in the basic cost-volume-profit model?

What is represented in a cost-volume-profit graph ?

How is total contribution margin calculated?

What is the contribution margin at the break-even point?

What is the break-even point?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost Behaviour

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

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