The phone bill for a CPA firm is a mixed cost. Please refer to the 4-month data below, apply the high-low method, and answer the question. \[\begin{array} { | l | r | r | } \hline & { \text { Minutes } } & \text { Total Bill } \\ \hline \text { Jan } & 300 & \$ 2,650 \\ \hline \text { Feb } & 150 & \$ 2,575 \\ \hline \text { Mar } & 100 & \$ 2,550 \\ \hline \text { Apr } & 250 & \$ 2,625 \\ \hline \end{array}\] - How much is the fixed portion of the total cost?

A) $2,050 B) $1,960 C) $2,500 D) $250 A) $2,050 B) $1,960 C) $2,500 D) $250

Arquebus Company is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen and collectors. He is currently producing 40 flintlock muskets per month. Cost data are as follows: \[\begin{array} { l l } \text { Price } & \$ 720 \text { per unit } \\ \text { Variable cost } & \$ 470 \text { per unit } \\ \text { Fixed costs } & \$ 8,000 \text { per month } \end{array}\] - How much is his margin of safety expressed in sales revenue?

A) $2,000 B) $1,600 C) $900 D) $1,200 A) $2,000 B) $1,600 C) $900 D) $1,200

Dalian Company provides the following information: \[\begin{array} { l l } \text { Price per unit: } & \$ 20 \\ \text { Variable cost per unit: } & \$ 8 \\ \text { Fixed costs per month: } & \$ 15,000 \end{array}\] - How much is the contribution margin per unit?

A) $12.00 B) $4.00 C) $4.50 D) $16.00 A) $12.00 B) $4.00 C) $4.50 D) $16.00

Dalian Company provides the following information: \[\begin{array} { l l } \text { Price per unit: } & \$ 20 \\ \text { Variable cost per unit: } & \$ 8 \\ \text { Fixed costs per month: } & \$ 15,000 \end{array}\] - How much is the contribution margin ratio?

A) 12% B) 6% C) 40% D) 60% A) 12% B) 6% C) 40% D) 60%

America First Company provided the following manufacturing costs for the month of June. $\begin{array}{|l|r|} \hline \text { Direct materials cost } & \$ 40,000 \\ \hline \text { Janitor's salary } & \$ 2,500 \\ \hline \text { Property taxes } & \$ 8,000 \\ \hline \text { Direct labor cost } & \$ 68,000 \\ \hline \text { Packaging costs } & \$ 9,400 \\ \hline \text { Equipment depreciation (straight-line) } & \$ 12,000 \\ \hline \text { Factory insurance } & \$ 9,500 \\ \hline \text { Factory manager's salary } & \$ 6,400 \\ \hline \end{array}$ - How much of the above would normally be considered variable costs?

A) $108,000 B) $125,400 C) $117,400 D) $38,400 A) $108,000 B) $125,400 C) $117,400 D) $38,400

Exam 19: Cost-Volume-Profit Analysis

Becky's Bakery sells three large muffins for every two small ones. A small muffin sells for $3, with a variable cost of $2.00. A large muffin sells for $5 with a variable cost of $2.50. Fixed costs are $3,000 per month. How much is the breakeven point in total sales dollars?

(Multiple Choice)

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Question 101

The McPherson Company is facing a $6 increase in the variable cost of producing one of its products for the upcoming year. Because of this situation, the sales manager has made a proposal to increase the selling price of the product while increasing the advertising budget at the same time. The price increase will lower sales volume, but the other changes may help the company maintain its profit margins. McPherson has provided the following information regarding the current year results and the proposal made by the sales manager: Current Year Proposal Urit sales 27,000 18,000 Sales price per urit \ 48 \ 58 Variable cost per urit \ 30 \ 36 Fixed cost \ 76,000 \ 96,000 Relative to the current year, the sales manager's proposal will:

(Multiple Choice)

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Question 102

The phone bill for a CPA firm is a mixed cost. Please refer to the 4-month data below, apply the high-low method, and answer the question. Minutes Total Bill Jan 300 \ 2,650 Feb 150 \ 2,575 Mar 100 \ 2,550 Apr 250 \ 2,625 - How much is the fixed portion of the total cost?

(Multiple Choice)

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Question 103

If variable costs go up, and all other factors remain the same, the business will have to sell more units to break even.

(True/False)

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Question 104

Arquebus Company is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen and collectors. He is currently producing 40 flintlock muskets per month. Cost data are as follows: Price \ 720 per unit Variable cost \ 470 per unit Fixed costs \ 8,000 per month - How much is his margin of safety expressed in sales revenue?

(Multiple Choice)

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Question 105

Dalian Company provides the following information: Price per unit: \ 20 Variable cost per unit: \ 8 Fixed costs per month: \ 15,000 - How much is the contribution margin per unit?

(Multiple Choice)

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Question 106

Variable costs change in direct proportion to a change in volume.

(True/False)

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Question 107

Taizhong Semiconductor Company mass produces several common computer chips. Type A sells for $1.20 per unit. Variable cost is $0.95 per unit and the fixed costs are $32,000 per month. Taizhong currently sells 140,000 units per month. How much is the margin of safety expressed in units per month?

(Multiple Choice)

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Question 108

Dalian Company provides the following information: Price per unit: \ 20 Variable cost per unit: \ 8 Fixed costs per month: \ 15,000 - How much is the contribution margin ratio?

(Multiple Choice)

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Question 109

Olympus Company sells 1,400 units per month at a price of $28.00 per unit. The variable cost is $22.50 per unit. How much is the total contribution margin? (Please round to nearest whole dollar.)

(Multiple Choice)

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Question 110

Which of the following accurately describes variable costing?

(Multiple Choice)

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Question 111

If variable costs go up, and all other factors remain the same, the margin of safety will shrink.

(True/False)

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Question 112

The breakeven point represents the sales volume at which the company's net income is zero.

(True/False)

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Question 113

The breakeven point on a CVP graph is the point where the sales revenue line intersects the total cost line.

(True/False)

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Question 114

Jurassic Manufacturers produces flooring material. Fixed costs are $5,000 per month. Sales price for one unit of product is $50, and the variable cost per unit is $30. If Jurassic wishes to earn an operating income of $5,000, how many units need to be sold?

(Multiple Choice)

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Question 115

If a unit sells for $11.40 and has a variable cost of $3.80, its contribution margin per unit is $7.60.

(True/False)

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Question 116

Jarvis Foods produces a gourmet condiment which sells for $10.00 per unit. Variable costs are $7.50 per unit, and fixed costs are $18,000 per month. Jarvis is currently selling 8,000 units per month. If Jarvis is forced to reduce the selling price down to $9.00 per unit, and volume remains constant, how will that affect its breakeven point in dollars?

(Multiple Choice)

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Question 117

A company sells products in two size packages-regular and long. The two products sell in equal numbers. The contribution margin of the regular is $12 and the contribution margin of the long size is $18. The weighted average contribution margin is $15.

(True/False)

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Question 118

America First Company provided the following manufacturing costs for the month of June. Direct materials cost \ 40,000 Janitor's salary \ 2,500 Property taxes \ 8,000 Direct labor cost \ 68,000 Packaging costs \ 9,400 Equipment depreciation (straight-line) \ 12,000 Factory insurance \ 9,500 Factory manager's salary \ 6,400 - How much of the above would normally be considered variable costs?

(Multiple Choice)

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(78)

Question 119

Paula sells hand-knitted scarves at the flea market. Each scarf sells for $25. Paula pays $30 to rent a vending space for one day. Her variable costs are $15 per scarf. What total revenue amount does she need to earn to break even?

(Multiple Choice)

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Question 120

Showing 101 - 120 of 163

Becky's Bakery sells three large muffins for every two small ones. A small muffin sells for $3, with a variable cost of $2.00. A large muffin sells for $5 with a variable cost of $2.50. Fixed costs are $3,000 per month. How much is the breakeven point in total sales dollars?

The phone bill for a CPA firm is a mixed cost. Please refer to the 4-month data below, apply the high-low method, and answer the question. Minutes Total Bill Jan 300 \ 2,650 Feb 150 \ 2,575 Mar 100 \ 2,550 Apr 250 \ 2,625 - How much is the fixed portion of the total cost?

If variable costs go up, and all other factors remain the same, the business will have to sell more units to break even.

Dalian Company provides the following information: Price per unit: \ 20 Variable cost per unit: \ 8 Fixed costs per month: \ 15,000 - How much is the contribution margin per unit?

Variable costs change in direct proportion to a change in volume.

Taizhong Semiconductor Company mass produces several common computer chips. Type A sells for $1.20 per unit. Variable cost is $0.95 per unit and the fixed costs are $32,000 per month. Taizhong currently sells 140,000 units per month. How much is the margin of safety expressed in units per month?

Dalian Company provides the following information: Price per unit: \ 20 Variable cost per unit: \ 8 Fixed costs per month: \ 15,000 - How much is the contribution margin ratio?

Olympus Company sells 1,400 units per month at a price of $28.00 per unit. The variable cost is $22.50 per unit. How much is the total contribution margin? (Please round to nearest whole dollar.)

Which of the following accurately describes variable costing?

If variable costs go up, and all other factors remain the same, the margin of safety will shrink.

The breakeven point represents the sales volume at which the company's net income is zero.

The breakeven point on a CVP graph is the point where the sales revenue line intersects the total cost line.

Jurassic Manufacturers produces flooring material. Fixed costs are $5,000 per month. Sales price for one unit of product is $50, and the variable cost per unit is $30. If Jurassic wishes to earn an operating income of $5,000, how many units need to be sold?

If a unit sells for $11.40 and has a variable cost of $3.80, its contribution margin per unit is $7.60.

A company sells products in two size packages-regular and long. The two products sell in equal numbers. The contribution margin of the regular is $12 and the contribution margin of the long size is $18. The weighted average contribution margin is $15.

Paula sells hand-knitted scarves at the flea market. Each scarf sells for $25. Paula pays $30 to rent a vending space for one day. Her variable costs are $15 per scarf. What total revenue amount does she need to earn to break even?

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Management Accounting

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

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