Assuming a constant mix of 3 units of Little for every 1 unit of Big. \[\begin{array} { l r r r } & \underline { \text { Little } } & \underline { \text { Big } } & \text { Total } \\ \text { Sales } & \$ 20 & \$ 30 & \\ \text { VC } & 14 & 18 & \\ \text { Total fixed costs } & & & \$ 48000 \end{array}\] The break-even point in units would be:

A) 4800 units of Little and 1600 units of Big. B) 1600 units of Little and 4800 units of Big. C) 1200 units of Little and 400 units of Big. D) 400 units of Little and 1200 units of Big. A) 4800 units of Little and 1600 units of Big. B) 1600 units of Little and 4800 units of Big. C) 1200 units of Little and 400 units of Big. D) 400 units of Little and 1200 units of Big.

Thorpe's Swimwear Company sells swimwear for men and boys.The average selling price and variable cost for each product are as follows: $\begin{array}{l} \begin{array}{llll} & \text { Men's } & & \text { Boys }^{\prime} \\ \text { Selling Price } & \$ 28.80 & \text { Selling Price } & \$ 24.00 \\ \text { Variable Cost } & \$ 20.40 & \text { Variable Cost } & \$ 16.80 \end{array}\\ \text { Fixed costs are } \$ 38400 \text {. } \end{array}$ Required: a.What is the break-even point in units for each type of swimwear,assuming the sales mix is 2:1 in favour of men's swimwear? b.What is the operating profit,assuming the sales mix is 2:1 in favour of men's swimwear,and sales total 9000 swimwear? _____________________________________________________________________________________________ _____________________________________________________________________________________________

a.N = break-even in boys' swimwear 2N =

Answer the following questions using the information below: Assume the following cost information for Murray River Company: $\begin{array}{lr} \text { Selling price } & \$ 240 \text { per unit } \\ \text { Variable costs } & \$ 140 \text { per unit } \\ \text { Total fixed costs } & \$ 140000 \\ \text { Tax rate } & 40 \% \end{array}$ -What minimum volume of sales dollars is required to earn an after tax net profit of $30 000?

A) $330 000 B) $165 000 C) $456 000 D) $465 000 A) $330 000 B) $165 000 C) $456 000 D) $465 000

Exam 4: Costvolumeprofit Analysis

Answer the following questions using the information below: Campesi intends to sell his customers a special round-trip airline ticket package.He is able to purchase the package from the airline carrier for $250 each.The round-trip tickets will be sold for $300 each and the airline intends to reimburse Campesi for any unsold ticket packages.Fixed costs include $7500 in advertising costs. -How many ticket packages will Campesi need to sell to break even?

(Multiple Choice)

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Question 121

In multiproduct situations when sales mix shifts toward the product with the highest contribution margin,operating profit will be higher.

(True/False)

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Question 122

Answer the following questions using the information below: Alice Springs University is planning to hold a fundraising banquet at one of the local golf clubs.It has two options for the banquet: OPTION 1: Crestview Golf Club a. Fixed rental cost of $1000 b. $12 per person for food OPTION 2: Tallgrass Golf Club a. Fixed rental cost of $3000 b. A caterer who charges $8.00 per person for food -Which option provides the least amount of risk?

(Multiple Choice)

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Question 123

The Cairns Company has fixed costs of $400 000 and variable costs are 75% of the selling price.To realise profits of $100 000 from sales of 500 000 units,the selling price per unit:

(Multiple Choice)

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Question 124

Sales total $250 000 when variable costs total $187 500 and fixed costs total $40 000.The break-even point in sales dollars is:

(Multiple Choice)

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Question 125

If a company increases fixed costs,then the break-even point will be lower.

(True/False)

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Question 126

When a greater proportion of costs are fixed costs,then:

(Multiple Choice)

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Question 127

Assuming a constant mix of 3 units of Little for every 1 unit of Big. Total Sales \ 20 \ 30 VC 14 18 Total fixed costs \ 48000 The break-even point in units would be:

(Multiple Choice)

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Question 128

Answer the following questions using the information below: Campesi intends to sell his customers a special round-trip airline ticket package.He is able to purchase the package from the airline carrier for $250 each.The round-trip tickets will be sold for $300 each and the airline intends to reimburse Campesi for any unsold ticket packages.Fixed costs include $7500 in advertising costs. -For every $28 500 of ticket packages sold,operating profit will increase by:

(Multiple Choice)

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Question 129

Thorpe's Swimwear Company sells swimwear for men and boys.The average selling price and variable cost for each product are as follows: Men's Selling Price \ 28.80 Selling Price \ 24.00 Variable Cost \ 20.40 Variable Cost \ 16.80 Fixed costs are \ 38400 . Required: a.What is the break-even point in units for each type of swimwear,assuming the sales mix is 2:1 in favour of men's swimwear? b.What is the operating profit,assuming the sales mix is 2:1 in favour of men's swimwear,and sales total 9000 swimwear? _ _

(Essay)

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Question 130

Answer the following questions using the information below: Nancy's Niche sells a single product.8000 units were sold resulting in $80 000 of sales revenue,$20 000 of variable costs,and $10 000 of fixed costs. -The contribution margin percentage is:

(Multiple Choice)

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Question 131

Answer the following questions using the information below: Alice Springs University is planning to hold a fundraising banquet at one of the local golf clubs.It has two options for the banquet: OPTION 1: Crestview Golf Club a. Fixed rental cost of $1000 b. $12 per person for food OPTION 2: Tallgrass Golf Club a. Fixed rental cost of $3000 b. A caterer who charges $8.00 per person for food -Which option provides the greatest operating profit if 600 people attend?

(Multiple Choice)

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Question 132

If a company has a degree of operating leverage of 2.0,that means a 20% increase in sales will result in a 40% increase in variable costs.

(True/False)

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Question 133

What is the break-even point in units,assuming a product's selling price is $100,fixed costs are $8000,unit variable costs are $20,and operating profit is $32 000?

(Multiple Choice)

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Question 134

In the graph method of CVP analysis,the total revenue line can be calculated by determining the total revenue at only one real output level because the starting point of the line is always the intersection of the X and Y axes.

(True/False)

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Question 135

At the break-even point of 200 units,variable costs total $400 and fixed costs total $600.The 201st unit sold will contribute ________ to profits.

(Multiple Choice)

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Question 136

Answer the following questions using the information below: Assume the following cost information for Murray River Company: Selling price \ 240 per unit Variable costs \ 140 per unit Total fixed costs \ 140000 Tax rate 40\% -What minimum volume of sales dollars is required to earn an after tax net profit of $30 000?

(Multiple Choice)

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Question 137

What effects would automating a production line have on a company's cost structure using CVP terminology? Could these changes have any negative effect on the firm? _ _

(Essay)

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Question 138

When there are multiple cost drivers the simple CVP formula of Q = (FC + OI)/CMU can still be used.

(True/False)

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Question 139

Platypus Company sells its only product for $18 per unit,variable production costs are $6 per unit,and selling and administrative costs are $3 per unit.Fixed costs for 10 000 units are $10 000.The contribution margin is:

(Multiple Choice)

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(73)

Question 140

In multiproduct situations when sales mix shifts toward the product with the highest contribution margin,operating profit will be higher.

The Cairns Company has fixed costs of $400 000 and variable costs are 75% of the selling price.To realise profits of $100 000 from sales of 500 000 units,the selling price per unit:

Sales total $250 000 when variable costs total $187 500 and fixed costs total $40 000.The break-even point in sales dollars is:

If a company increases fixed costs,then the break-even point will be lower.

When a greater proportion of costs are fixed costs,then:

Assuming a constant mix of 3 units of Little for every 1 unit of Big. Total Sales \ 20 \ 30 VC 14 18 Total fixed costs \ 48000 The break-even point in units would be:

Answer the following questions using the information below: Nancy's Niche sells a single product.8000 units were sold resulting in $80 000 of sales revenue,$20 000 of variable costs,and $10 000 of fixed costs. -The contribution margin percentage is:

If a company has a degree of operating leverage of 2.0,that means a 20% increase in sales will result in a 40% increase in variable costs.

What is the break-even point in units,assuming a product's selling price is $100,fixed costs are $8000,unit variable costs are $20,and operating profit is $32 000?

In the graph method of CVP analysis,the total revenue line can be calculated by determining the total revenue at only one real output level because the starting point of the line is always the intersection of the X and Y axes.

At the break-even point of 200 units,variable costs total $400 and fixed costs total $600.The 201st unit sold will contribute ________ to profits.

What effects would automating a production line have on a company's cost structure using CVP terminology? Could these changes have any negative effect on the firm? _ _

When there are multiple cost drivers the simple CVP formula of Q = (FC + OI)/CMU can still be used.

Platypus Company sells its only product for $18 per unit,variable production costs are $6 per unit,and selling and administrative costs are $3 per unit.Fixed costs for 10 000 units are $10 000.The contribution margin is:

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

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