Exam 7: Cost-Volume-Profit Analysis

_____________________ is the use of fixed costs to extract higher percentage changes in profits as sales activity changes.

Yerke Company makes jungle gyms and tree houses for children.For jungle gyms, the price is $120 and variable expenses are $90 per unit.For tree houses, the price is $200 and variable expenses are $100.Total fixed expenses are $253,750.Last year, Yerke sold 12,000 gyms and 4,000 tree houses.Now suppose that Yerke expects tree house demand to increase from 4,000 to 8,000 units. -What is the new (combined, overall or package) contribution margin ratio (rounded to two decimal places)?

The following data pertain to the three products produced by Excellent Corporation: Fixed costs are $90,000 per month. The sales mix of Excellent Corporation consists of 65% of Product A, 20% of Product B, and 15% of Product C. What is the monthly break-even point for total units?

Following is information about the Eclypso Company's two products What is the total monthly sales volume in units required to break-even when the sales mix in units is 80% Product X and 20% Product Y?

Common fixed expenses are the fixed costs that are traceable to the segments and would be avoided if the segment did not exist.

If variable costs per unit decrease, sales volume at the break-even point will

Assuming that fixed costs remain unchanged, the _____________________ can be used to find the profit impact of a change in sales revenue.

The quantity at which two systems produce the same operating income is referred to as the ___________________.

If one increases variable costs per unit, the break-even point will decrease.

The units sold or expected to be sold or sales revenue earned or expected to be earned above the break-even volume is called

Paney Company makes calendars.Information on cost per unit is as follows: - Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000.The price per calendar is $10.What is the variable cost per unit?

Which of the following shows how far a company's actual sales and/or units are above the break-even point?

Assume the following information: How many units must be sold to generate a profit of $50,000?

If the contribution margin per unit decreases, the break-even point in units

The amount of income an organization is trying to achieve during a particular period is known as the _____________.

The impact on a firm's income resulting from a change in the number of units sold can be assessed by multiplying the unit contribution margin by the change in units sold assuming that fixed costs remain the same.

Yerke Company makes jungle gyms and tree houses for children.For jungle gyms, the price is $120 and variable expenses are $90 per unit.For tree houses, the price is $200 and variable expenses are $100.Total fixed expenses are $253,750.Last year, Yerke sold 12,000 gyms and 4,000 tree houses.Now suppose that Yerke expects tree house demand to increase from 4,000 to 8,000 units. - What is the sales revenue at break-even?

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

If sales remain the same and the margin of safety increases, which of the following is true?

Learner Company sells its product for $100.It has a variable cost ratio of 70% and total fixed costs of $9,000.What is the break-even point in sales dollars for Learner Company?