Exam 11: Cost Behavior and Cost-Volume-Profit Analysis

Which of the following graphs illustrates the behavior of a total variable cost?

Clinton Co.has an operating leverage of 4.Sales are expected to increase by 8% next year.Operating income is

If fixed costs are $810,000,the unit selling price is $60,and the unit variable costs are $48,what is the break-even sales (in units)if the variable costs are increased by $2?

If fixed costs are $810,000,the unit selling price is $60,and the unit variable costs are $48,what is the break-even sales (in units)if fixed costs are reduced by $50,000?

If sales total $1,000,000,fixed costs total $400,000,and variable costs are 55% of sales,the contribution margin ratio is 45%.

Snower Corporation sells product G for $150 per unit,the variable cost per unit is $105,the fixed costs are $720,000,and Snower is in the 25% corporate tax bracket.What are the sales (in dollars)required to earn a net income (after tax)of $40,000?

Kennedy Co.sells two products,Arks and Bins.Last year,Kennedy sold 32,000 units of Arks and 18,000 units of Bins.Related data are: -What was Kennedy Co.'s overall enterprise product's unit contribution margin?

If the unit selling price is $40,the volume of sales is $3,000,000,sales at the break-even point amount to $2,500,000,and the maximum possible sales are $3,300,000,the margin of safety is 7,500 units.

The point in operations at which revenues and expired costs are exactly equal is called the break-even point.

If direct materials cost per unit decreases,the amount of sales necessary to earn a desired amount of profit will decrease.

If fixed costs are $450,000,the unit selling price is $75,and the unit variable costs are $50,what are the old and new break-even sales (in units)if the unit selling price increases by $5?

Which of the following statements is TRUE regarding fixed and variable costs?

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

Winston Co.manufactures office furniture.During the most productive month of the year,3,500 desks were manufactured at a total cost of $84,400.In its slowest month,the company made 1,100 desks at a cost of $46,000.Using the high-low method of cost estimation,total fixed costs are

Only a single line,which represents the difference between total sales revenues and total costs,is plotted on the profit-volume chart.

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 fixed costs are $220,000 and the unit contribution margin is $25,the sales necessary to earn an operating income of $30,000 are 10,000 units.

Monthly rent on a factory building that does NOT vary with the number of units produced is an example of a fixed cost.

Tucker Co.manufactures office furniture.During the most productive month of the year,3,600 desks were manufactured at a total cost of $192,000.In its slowest month,the company made 1,200 desks at a cost of $72,000.Using the high-low method of cost estimation,total fixed costs per month are