Exam 7: Cost-Volume-Profit Analysis

Pauley Company provides home health care.Pauley charges $35/hour for professional care.Variable costs are $21/hour and fixed costs are $78,000.Next year, Pauley expects to charge out 12,000 hours of home health care. -What is the contribution margin per hour?

Given the following numbers from Webster Company, match the correct value with its appropriate term.Webster Company sells a product for $20.Unit cost information is as follows: Webster normally produces 50,000 units and the fixed overhead rate is based on this amount.Fixed selling and administrative expense is $87,000. -Contribution margin ratio

Which of the following can be considered a crude measure of operating risk?

The "what-if" process of altering certain key variables to assess the effect on the original outcome is also called a __________________.

______________ gives us a way to determine how many units must be sold, or how much sales revenue must be generated to earn a particular target income.

Total variable cost divided by price is

The _________________________ depicts the relationships among cost, volume, and profits by plotting the total revenue line and the total cost line on a graph.

A company provided the following data: - What is the break-even point in sales dollars?

Atlas Company sells only one product at a regular price of $10.00 per unit.Variable expenses are 70% of sales, and fixed expenses are $50,000.Management has decided to decrease the selling price to $9.00 in the hope of increasing its volume of sales.What is the sales dollars level required to break even at the old price of $10.00? (Note: Round answer to two decimal places.)

Greenwood Company sells a product for $17 per unit, variable cost is $12 per unit, and the total fixed cost is $6,000.What is the per unit contribution margin?

Given the following numbers from Webster Company, match the correct value with its appropriate term.Webster Company sells a product for $20.Unit cost information is as follows: Webster normally produces 50,000 units and the fixed overhead rate is based on this amount.Fixed selling and administrative expense is $87,000. -break-even point (in dollars)

Match each item with the correct statement below. -the selling price per unit

Taylor Company produces two products, X and Y, which account for 70% and 30%, respectively, of total sales dollars.Contribution margin ratios are 60% for X and 30% for Y.Total fixed costs are $140,000.What is Taylor's break-even point in sales dollars? (Note: Round answer to the nearest dollar.)

A company's mix of fixed costs relative to variable costs is referred to as its _______________.

A graph that depicts the relationships among cost, volume and profits (operating income) is the

The _____ can be measured for a given level of sales by taking the ratio of contribution margin to operating income.

Given the following numbers from Webster Company, match the correct value with its appropriate term.Webster Company sells a product for $20.Unit cost information is as follows: Webster normally produces 50,000 units and the fixed overhead rate is based on this amount.Fixed selling and administrative expense is $87,000. -Variable cost ratio

The difference between sales and variable expenses is called the ______________________.

Sales mix is the relative combination of

John Wilson, a sole proprietor, has the following projected figures for next year: What is the contribution margin ratio? (Note: Round answer to three decimal places.)