Question 1

For purposes of analysis,mixed costs can generally be separated into their variable and fixed components.

Accepted Answer

A) True 
 B)False

Question 2

Given the following cost and activity observations for Smithson Company's utilities,use the high-low method to calculate Smithson's fixed costs per month.Do not round your intermediate calculations.

Accepted Answer

A)  $1,533 
B)  $2,530 
C)  $22,800 
D)  $50,600 
A)  $1,533 
B)  $2,530 
C)  $22,800 
D)  $50,600

Question 3

If fixed costs are $300,000,the unit selling price is $31,and the unit variable costs are $22,what is the break-even sales (units)if fixed costs are reduced by $30,000?

Accepted Answer

A)  30,000 units 
B)  8,710 units 
C)  12,273 units 
D)  20,000 units 
A)  30,000 units 
B)  8,710 units 
C)  12,273 units 
D)  20,000 units

Question 4

What was Rusty Co.'s sales mix last year?

Accepted Answer

A)  58% X,42% Y 
B)  60% X,40% Y 
C)  30% X,70% Y 
D)  12.5% X,87.5% Y 
A)  58% X,42% Y 
B)  60% X,40% Y 
C)  30% X,70% Y 
D)  12.5% X,87.5% Y

Question 5

If Kaden Company's fixed costs are $46,800,the unit selling price is $42,and the unit variable costs are $24.What is the break-even sales (units)?

Accepted Answer

A)  2,400 
B)  1,950 
C)  1,114 
D)  2,600 
A)  2,400 
B)  1,950 
C)  1,114 
D)  2,600

Question 6

Given the following cost and activity observations for Bounty Company's utilities,use the high-low method to calculate Bounty' variable utilities costs per machine hour.Round your answer to the nearest cent. ​

Accepted Answer

A)  $10.00 
B)  $0.67 
C)  $0.63 
D)  $0.11 
A)  $10.00 
B)  $0.67 
C)  $0.63 
D)  $0.11

Question 7

What was Carter Co.'s sales mix last year?

Accepted Answer

A)  20% Arks,80% Bins 
B)  12% Arks,28% Bins 
C)  70% Arks,30% Bins 
D)  40% Arks,20% Bins 
A)  20% Arks,80% Bins 
B)  12% Arks,28% Bins 
C)  70% Arks,30% Bins 
D)  40% Arks,20% Bins

Question 8

Assuming that last year's fixed costs totaled $675,000.What was Rusty Co.'s break-even point in units?

Accepted Answer

A)  16,875 units 
B)  30,100 units 
C)  30,000 units 
D)  11,250 units 
A)  16,875 units 
B)  30,100 units 
C)  30,000 units 
D)  11,250 units

Question 9

If sales total $2,000,000,fixed costs total $800,000,and variable costs are 60% of sales,the contribution margin ratio is 40%.

Accepted Answer

A) True 
 B)False

Question 10

If fixed costs are $850,000 and variable costs are 60% of sales,what is the break-even point (dollars)?

Accepted Answer

A)  $2,125,000 
B)  $340,000 
C)  $3,400,000 
D)  $1,416,666 
A)  $2,125,000 
B)  $340,000 
C)  $3,400,000 
D)  $1,416,666

Question 11

Which of the following is an example of a cost that varies in total as the number of units produced changes?

Accepted Answer

A)  salary of a production supervisor 
B)  direct materials cost 
C)  property taxes on factory buildings 
D)  straight-line depreciation on factory equipment 
A)  salary of a production supervisor 
B)  direct materials cost 
C)  property taxes on factory buildings 
D)  straight-line depreciation on factory equipment

Question 12

If a business had sales of $4,000,000 and a margin of safety of 25%,the break-even point was

Accepted Answer

A)  $5,000,000 
B)  $3,000,000 
C)  $12,000,000 
D)  $1,000,000 
A)  $5,000,000 
B)  $3,000,000 
C)  $12,000,000 
D)  $1,000,000

Question 13

The reliability of cost-volume-profit analysis does not depend on the assumption that costs can be accurately divided into fixed and variable components.

Accepted Answer

A) True 
 B)False

Question 14

Bluegill Company sells 45,000 units at $18 per unit.Fixed costs are $62,000 and income from operations is $298,000.Determine the (a)variable cost per unit,(b)unit contribution margin,and (c)contribution margin ratio.

Accepted Answer

The answer of Bluegill Company sells 45,000 units at $18...

Question 15

The Waterfall Company sells a product for $150 per unit.The variable cost is $80 per unit,and fixed costs are $270,000.
​
Determine the (a)break-even point in sales units,and (b)break-even points in sales units if the company desires a target profit of $36,000.Round your answer to the nearest whole number.

Accepted Answer

a.$150 - $80 = $70 $

Question 16

When a business sells more than one product at varying selling prices,the business's break-even point can be determined as long as the number of products does not exceed

Accepted Answer

A)  two 
B)  three 
C)  fifteen 
D)  there is no limit 
A)  two 
B)  three 
C)  fifteen 
D)  there is no limit

Question 17

For the current year ending January 31,Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50.For the coming year,a new wage contract will increase the unit variable cost to $55.50.The selling price of $70.00 per unit is expected to remain the same.

Accepted Answer

The answer of For the current year ending January 31,Harp...

Question 18

If sales total $2,000,000,fixed costs total $800,000,and variable costs are 60% of sales,the contribution margin ratio is 60%.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

If direct materials cost per unit increases,the break-even point will increase.

Accepted Answer

A) True 
 B)False

Exam 19: Cost-Volume-Profit Analysis

For purposes of analysis,mixed costs can generally be separated into their variable and fixed components.

Given the following cost and activity observations for Smithson Company's utilities,use the high-low method to calculate Smithson's fixed costs per month.Do not round your intermediate calculations.

If fixed costs are $300,000,the unit selling price is $31,and the unit variable costs are $22,what is the break-even sales (units)if fixed costs are reduced by $30,000?

What was Rusty Co.'s sales mix last year?

If Kaden Company's fixed costs are $46,800,the unit selling price is $42,and the unit variable costs are $24.What is the break-even sales (units)?

Given the following cost and activity observations for Bounty Company's utilities,use the high-low method to calculate Bounty' variable utilities costs per machine hour.Round your answer to the nearest cent. ​

What was Carter Co.'s sales mix last year?

Assuming that last year's fixed costs totaled $675,000.What was Rusty Co.'s break-even point in units?

If sales total $2,000,000,fixed costs total $800,000,and variable costs are 60% of sales,the contribution margin ratio is 40%.

If fixed costs are $850,000 and variable costs are 60% of sales,what is the break-even point (dollars)?

Which of the following is an example of a cost that varies in total as the number of units produced changes?

If a business had sales of $4,000,000 and a margin of safety of 25%,the break-even point was

The reliability of cost-volume-profit analysis does not depend on the assumption that costs can be accurately divided into fixed and variable components.

Bluegill Company sells 45,000 units at $18 per unit.Fixed costs are $62,000 and income from operations is $298,000.Determine the (a)variable cost per unit,(b)unit contribution margin,and (c)contribution margin ratio.

When a business sells more than one product at varying selling prices,the business's break-even point can be determined as long as the number of products does not exceed

For the current year ending January 31,Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50.For the coming year,a new wage contract will increase the unit variable cost to $55.50.The selling price of $70.00 per unit is expected to remain the same.

If sales total $2,000,000,fixed costs total $800,000,and variable costs are 60% of sales,the contribution margin ratio is 60%.

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

If direct materials cost per unit increases,the break-even point will increase.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Given the following cost and activity observations for Bounty Company's utilities,use the high-low method to calculate Bounty' variable utilities costs per machine hour.Round your answer to the nearest cent.