Given the following costs and activity observations for Pike Company's utilities, use the high-low method to calculate Pike Company's variable utilities costs per machine hour. \[\begin{array}{l} \begin{array} { l l l } \text { Machine Hours}&\text { Cost }\\ 15,000 & \$ 3,100 & \text { March } \\ 10,000 & 2,700 & \text { April } \\ 12,000 & 2,900 & \text { May } \\ 18,000 & 3,500 & \text { June} \end{array} \end{array}\]

A) $0.10 B) $0.19 C) $0.21 D) $0.27 A) $0.10 B) $0.19 C) $0.21 D) $0.27

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

Wiles Inc.'s unit selling price is $40, the unit variable costs is $30, fixed costs are $135,000, and current sales are 10,000 units. How much would operating income change if sales increase by 5,000 units?

(Multiple Choice)

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Question 41

Direct materials cost is an example of a fixed cost of production.

(True/False)

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Question 42

Direct materials and direct labor costs are examples of variable costs of production.

(True/False)

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Question 43

Given the following costs and activity observations for Pike Company's utilities, use the high-low method to calculate Pike Company's variable utilities costs per machine hour. Machine Hours Cost 15,000 \ 3,100 March 10,000 2,700 April 12,000 2,900 May 18,000 3,500 June

(Multiple Choice)

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Question 44

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

(Multiple Choice)

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Question 45

The relevant range is useful for analyzing cost behavior for management decision-making purposes.

(True/False)

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Question 46

If sales are $200,000, variable costs are 56% of sales, and operating income is $30,000, what is the contribution margin ratio?

(Multiple Choice)

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Question 47

Which ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?

(Multiple Choice)

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Question 48

A mixed cost has characteristics of both a variable cost and a fixed cost.

(True/False)

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Question 49

If a business had sales of $4,000,000, fixed costs of $1,200,000, a margin of safety of 25%, and a contribution margin ratio of 40%, what was the break-even point?

(Multiple Choice)

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Question 50

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

(Multiple Choice)

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Question 51

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: Use the above given data to solve the following questions: Refer to the information provided for Kennedy Co. What was Kennedy's overall product's unit variable cost?

(Multiple Choice)

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Question 52

A change in fixed costs as a result of increase in yearly insurance premium will decrease the break-even point.

(True/False)

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Question 53

If a business sells two products, it is not possible to estimate the break-even point.

(True/False)

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Question 54

If fixed costs are $350,000, the unit selling price is $80, and the unit variable cost is $30, what is the break-even sales (in units)?

(Multiple Choice)

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Question 55

Snower Corporation sells product G for $150 per unit, the variable cost per unit is $105, and the fixed costs are $720,000. What is the sales (in dollars) required to realize income from operations of $40,000?

(Multiple Choice)

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Question 56

Which of the following graphs illustrates the behavior of a total fixed cost within the specified relevant range?

(Multiple Choice)

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Question 57

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

(True/False)

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Question 58

If fixed costs are $850,000 and the unit contribution margin is $50, profit is zero when 15,000 units are sold.

(True/False)

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Question 59

Variable costs as a percentage of sales is equal to 100% minus the contribution margin ratio.

(True/False)

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Question 60

Showing 41 - 60 of 140

Wiles Inc.'s unit selling price is $40, the unit variable costs is $30, fixed costs are $135,000, and current sales are 10,000 units. How much would operating income change if sales increase by 5,000 units?

Direct materials cost is an example of a fixed cost of production.

Direct materials and direct labor costs are examples of variable costs of production.

Given the following costs and activity observations for Pike Company's utilities, use the high-low method to calculate Pike Company's variable utilities costs per machine hour. Machine Hours Cost 15,000 \ 3,100 March 10,000 2,700 April 12,000 2,900 May 18,000 3,500 June

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

The relevant range is useful for analyzing cost behavior for management decision-making purposes.

If sales are $200,000, variable costs are 56% of sales, and operating income is $30,000, what is the contribution margin ratio?

Which ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?

A mixed cost has characteristics of both a variable cost and a fixed cost.

If a business had sales of $4,000,000, fixed costs of $1,200,000, a margin of safety of 25%, and a contribution margin ratio of 40%, what was the break-even point?

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

A change in fixed costs as a result of increase in yearly insurance premium will decrease the break-even point.

If a business sells two products, it is not possible to estimate the break-even point.

If fixed costs are $350,000, the unit selling price is $80, and the unit variable cost is $30, what is the break-even sales (in units)?

Snower Corporation sells product G for $150 per unit, the variable cost per unit is $105, and the fixed costs are $720,000. What is the sales (in dollars) required to realize income from operations of $40,000?

Which of the following graphs illustrates the behavior of a total fixed cost within the specified relevant range?

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

If fixed costs are $850,000 and the unit contribution margin is $50, profit is zero when 15,000 units are sold.

Variable costs as a percentage of sales is equal to 100% minus the contribution margin ratio.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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