Exam 19: Cost-Volume-Profit Analysis

The ratio that indicates the percentage of each sales dollar available to cover the fixed costs and to provide operating income is termed the contribution margin ratio.

The graph of a variable cost when plotted against its related activity base appears as a

Given the following costs and activities for Dance Company electrical costs,use the high-low method to calculate Dance's variable electrical costs per machine hour. ​

If yearly insurance premiums are increased,this change in fixed costs will result in an increase in the break-even point.

Which of the following conditions would cause the break-even point to decrease?

When Isaiah Company has fixed costs of $120,000 and the contribution margin is $30,the break-even point is

The difference between the current sales revenue and the sales at the break-even point is called the

Thompson Company manufactures and sells cookware.Because of current trends,it expects to increase sales by 15% next year.If this expected level of production and sales occurs and plant expansion is not needed,how should this increase affect next year's total amounts for the following costs. ​ Variable Costs Fixed Costs Mixed Costs

What was Carter Co.'s unit selling price of E,with E representing one overall "enterprise" product?

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

Charlotte Co.has budgeted salary increases to factory supervisors totaling 9%.If selling prices and all other cost relationships are held constant,next year's break-even point

The relative distribution of sales among the various products sold by a business is the

O'Boyle Co.'s fixed costs are $256,000,the unit selling price is $36,and the unit variable costs are $20,what is the break-even sales (units)?

For the past year,Pedi Company had fixed costs of $70,000,unit variable costs of $32,and a unit selling price of $40.For the coming year,no changes are expected in revenues and costs,except that property taxes are expected to increase by $10,000.Determine the break-even sales (units)for (a)the past year and (b)the coming year.

If fixed costs are $500,000,the unit selling price is $55,and the unit variable costs are $30,what is the break-even sales (units)if fixed costs are increased by $80,000?

Racer Industries has fixed costs of $900,000.Selling price per unit is $250,and variable cost per unit is $130. Required: (a)How many units must Racer sell in order to break even? (b)How many units must Racer sell in order to earn a profit of $480,000? (c)A new employee suggests that Racer Industries sponsor a 10K marathon as a form of advertising.The cost to sponsor the event is $7,200.How many more units must be sold to cover this cost?

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

Manley Co.manufactures office furniture.During the most productive month of the year,4,500 desks were manufactured at a total cost of $86,625.In its slowest month,the company made 1,800 desks at a cost of $49,500.Using the high-low method of cost estimation,total fixed costs are

Which of the following conditions would cause the break-even point to increase?

Given the following cost data,what type of cost is shown? ​ ​ ​