Question 1

Lore Corporation has provided the following information:   Lore's break-even point in dollar sales is:

Accepted Answer

A) $50, 000 
B) $10, 000 
C) $12, 500 
D) $40, 000 
A) $50, 000 
B) $10, 000 
C) $12, 500 
D) $40, 000

Question 2

Wyly Inc.produces and sells a single product.The selling price of the product is $170.00 per unit and its variable cost is $62.90 per unit.The fixed expense is $356, 643 per month. The break-even in monthly dollar sales is closest to:

Accepted Answer

A) $963, 900 
B) $628, 881 
C) $566, 100 
D) $356, 643 
A) $963, 900 
B) $628, 881 
C) $566, 100 
D) $356, 643

Question 3

Bohlen Corporation produces and sells a single product.Data concerning that product appear below:   Fixed expenses are $716, 000 per month.The company is currently selling 6, 000 units per month.Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Bohlen Corporation.Refer to the original data when answering this question.
The marketing manager would like to cut the selling price by $17 and increase the advertising budget by $42, 000 per month.The marketing manager predicts that these two changes would increase monthly sales by 1, 000 units.What should be the overall effect on the company's monthly net operating income of this change?

Accepted Answer

A) increase of $85, 000 
B) increase of $121, 000 
C) decrease of $85, 000 
D) decrease of $17, 000 
A) increase of $85, 000 
B) increase of $121, 000 
C) decrease of $85, 000 
D) decrease of $17, 000

Question 4

Data concerning Matsumoto Corporation's single product appear below:   Assume the company's target profit is $5, 000.The unit sales to attain that target profit is closest to:

Accepted Answer

A) 5, 496 units 
B) 2, 198 units 
C) 3, 786 units 
D) 3, 664 units 
A) 5, 496 units 
B) 2, 198 units 
C) 3, 786 units 
D) 3, 664 units

Question 5

Macmullen Corporation produces and sells two products.Data concerning those products for the most recent month appear below:   The fixed expenses of the entire company were $30, 970.If the sales mix were to shift toward Product D08Q with total dollar sales remaining constant, the overall break-even point for the entire company:

Accepted Answer

A) would increase. 
B) would decrease. 
C) would not change. 
D) could increase or decrease. 
A) would increase. 
B) would decrease. 
C) would not change. 
D) could increase or decrease.

Question 6

Shauer, Inc. , produces and sells a single product whose selling price is $150.00 per unit and whose variable expense is $33.00 per unit.The company's fixed expense is $436, 410 per month.
Required:
Determine the monthly break-even in either unit or total dollar sales.Show your work!

Accepted Answer

@#IMG-DLM& Unit sales to break even = Fi

Question 7

Bohlen Corporation produces and sells a single product.Data concerning that product appear below:   Fixed expenses are $716, 000 per month.The company is currently selling 6, 000 units per month.Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Bohlen Corporation.Refer to the original data when answering this question.
The marketing manager would like to introduce sales commissions as an incentive for the sales staff.The marketing manager has proposed a commission of $16 per unit.In exchange, the sales staff would accept a decrease in their salaries of $84, 000 per month.(This is the company's savings for the entire sales staff. )The marketing manager predicts that introducing this sales incentive would increase monthly sales by 600 units.What should be the overall effect on the company's monthly net operating income of this change?

Accepted Answer

A) increase of $74, 400 
B) increase of $64, 800 
C) decrease of $103, 200 
D) increase of $928, 800 
A) increase of $74, 400 
B) increase of $64, 800 
C) decrease of $103, 200 
D) increase of $928, 800

Question 8

At a break-even point of 800 units sold, White Corporation's variable expenses are $8, 000 and its fixed expenses are $4, 000.What will the Corporation's net operating income be at a volume of 801 units?

Accepted Answer

A) $15 
B) $10 
C) $5 
D) $20 
A) $15 
B) $10 
C) $5 
D) $20

Question 9

Data concerning Marchman Corporation's single product appear below:   The company is currently selling 4, 000 units per month.Fixed expenses are $166, 000 per month.Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Marchman Corporation.Refer to the original data when answering this question.
The marketing manager would like to cut the selling price by $7 and increase the advertising budget by $11, 000 per month.The marketing manager predicts that these two changes would increase monthly sales by 800 units.What should be the overall effect on the company's monthly net operating income of this change?

Accepted Answer

A) increase of $21, 800 
B) decrease of $21, 800 
C) increase of $79, 400 
D) decrease of $6, 200 
A) increase of $21, 800 
B) decrease of $21, 800 
C) increase of $79, 400 
D) decrease of $6, 200

Question 10

Koelsch Corporation's only product sells for $170 per unit.Its current sales are 43, 600 units and its break-even sales are 39, 240 units.
Required:
Compute the margin of safety in both dollars and as a percentage of sales.

Accepted Answer

The answer of Koelsch Corporation's only product sells for $170...

Question 11

The contribution margin ratio of Donath Corporation's only product is 65%.The company's monthly fixed expense is $573, 300 and the company's monthly target profit is $9, 100.
Required:
Determine the dollar sales to attain the company's target profit.Show your work!

Accepted Answer

Dollar sales to attain target

Question 12

Data concerning Massing Corporation's single product appear below:   The company is currently selling 9, 000 units per month.Fixed expenses are $837, 000 per month.The marketing manager believes that a $16, 000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales.What should be the overall effect on the company's monthly net operating income of this change?

Accepted Answer

A) increase of $1, 250 
B) decrease of $16, 000 
C) decrease of $1, 250 
D) increase of $17, 250 
A) increase of $1, 250 
B) decrease of $16, 000 
C) decrease of $1, 250 
D) increase of $17, 250

Question 13

Contribution margin is the amount remaining after:

Accepted Answer

A) variable expenses have been deducted from sales revenue. 
B) fixed expenses have been deducted from sales revenue. 
C) fixed expenses have been deducted from variable expenses. 
D) cost of goods sold has been deducted from sales revenues. 
A) variable expenses have been deducted from sales revenue. 
B) fixed expenses have been deducted from sales revenue. 
C) fixed expenses have been deducted from variable expenses. 
D) cost of goods sold has been deducted from sales revenues.

Question 14

A tile manufacturer has supplied the following data:   If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to:

Accepted Answer

A) $6, 600 
B) $184, 200 
C) $134, 422 
D) $138, 600 
A) $6, 600 
B) $184, 200 
C) $134, 422 
D) $138, 600

Question 15

A tile manufacturer has supplied the following data:   The company's contribution margin ratio is closest to:

Accepted Answer

A) 29.4% 
B) 4.7% 
C) 63.3% 
D) 36.7% 
A) 29.4% 
B) 4.7% 
C) 63.3% 
D) 36.7%

Question 16

Data concerning Bunck Corporation's single product appear below:   Fixed expenses are $202, 000 per month.The company is currently selling 2, 000 units per month.Management is considering using a new component that would increase the unit variable cost by $18.Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units.What should be the overall effect on the company's monthly net operating income of this change?

Accepted Answer

A) decrease of $47, 200 
B) decrease of $11, 200 
C) increase of $47, 200 
D) increase of $11, 200 
A) decrease of $47, 200 
B) decrease of $11, 200 
C) increase of $47, 200 
D) increase of $11, 200

Question 17

Bohlen Corporation produces and sells a single product.Data concerning that product appear below:   Fixed expenses are $716, 000 per month.The company is currently selling 6, 000 units per month.Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Bohlen Corporation.Refer to the original data when answering this question.
The marketing manager believes that a $20, 000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales.What should be the overall effect on the company's monthly net operating income of this change?

Accepted Answer

A) decrease of $5, 920 
B) increase of $5, 920 
C) decrease of $20, 000 
D) increase of $25, 920 
A) decrease of $5, 920 
B) increase of $5, 920 
C) decrease of $20, 000 
D) increase of $25, 920

Question 18

Reynold Enterprises sells a single product for $25.The variable expense per unit is $15 and the fixed expense per unit is $5 at the current level of sales.The company's net operating income will increase by $10 if one more unit is sold.

Accepted Answer

A) True 
 B)False

Question 19

In the most recent month, Shoemaker Corporation's total contribution margin was $29, 600 and its net operating income $3, 000.
Required:
a.Compute the degree of operating leverage to two decimal places.
b.Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 10% increase in sales.

Accepted Answer

a.Degree of operating leverage = Contrib

Question 20

The unit sales volume necessary to reach a target profit is determined by dividing the sum of the fixed expenses and the target profit by the contribution margin per unit.

Accepted Answer

A) True 
 B)False

Lore Corporation has provided the following information: Lore's break-even point in dollar sales is:

Wyly Inc.produces and sells a single product.The selling price of the product is $170.00 per unit and its variable cost is $62.90 per unit.The fixed expense is $356, 643 per month. The break-even in monthly dollar sales is closest to:

Data concerning Matsumoto Corporation's single product appear below: Assume the company's target profit is $5, 000.The unit sales to attain that target profit is closest to:

Shauer, Inc. , produces and sells a single product whose selling price is $150.00 per unit and whose variable expense is $33.00 per unit.The company's fixed expense is $436, 410 per month. Required: Determine the monthly break-even in either unit or total dollar sales.Show your work!

At a break-even point of 800 units sold, White Corporation's variable expenses are $8, 000 and its fixed expenses are $4, 000.What will the Corporation's net operating income be at a volume of 801 units?

Koelsch Corporation's only product sells for $170 per unit.Its current sales are 43, 600 units and its break-even sales are 39, 240 units. Required: Compute the margin of safety in both dollars and as a percentage of sales.

The contribution margin ratio of Donath Corporation's only product is 65%.The company's monthly fixed expense is $573, 300 and the company's monthly target profit is $9, 100. Required: Determine the dollar sales to attain the company's target profit.Show your work!

Contribution margin is the amount remaining after:

A tile manufacturer has supplied the following data: If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to:

A tile manufacturer has supplied the following data: The company's contribution margin ratio is closest to:

Reynold Enterprises sells a single product for $25.The variable expense per unit is $15 and the fixed expense per unit is $5 at the current level of sales.The company's net operating income will increase by $10 if one more unit is sold.

The unit sales volume necessary to reach a target profit is determined by dividing the sum of the fixed expenses and the target profit by the contribution margin per unit.

Managerial Accounting and Cost Concepts

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Pricing Products and Services

Profitability Analysis

Least Squares Regression Computations

Activity-Based Absorption Costing

the Predetermined Overhead Rate and Capacity

Super-Variable Costing

Abc Action Analysis

the Concept of Present Value

Income Taxes and the Net Present Value Method

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

Filters

Exam 2: Cost-Volume-Profit Relationships

Lore Corporation has provided the following information: Lore's break-even point in dollar sales is:

Wyly Inc.produces and sells a single product.The selling price of the product is $170.00 per unit and its variable cost is $62.90 per unit.The fixed expense is $356, 643 per month. The break-even in monthly dollar sales is closest to:

Data concerning Matsumoto Corporation's single product appear below: Assume the company's target profit is $5, 000.The unit sales to attain that target profit is closest to:

Shauer, Inc. , produces and sells a single product whose selling price is $150.00 per unit and whose variable expense is $33.00 per unit.The company's fixed expense is $436, 410 per month. Required: Determine the monthly break-even in either unit or total dollar sales.Show your work!

At a break-even point of 800 units sold, White Corporation's variable expenses are $8, 000 and its fixed expenses are $4, 000.What will the Corporation's net operating income be at a volume of 801 units?

Koelsch Corporation's only product sells for $170 per unit.Its current sales are 43, 600 units and its break-even sales are 39, 240 units. Required: Compute the margin of safety in both dollars and as a percentage of sales.

The contribution margin ratio of Donath Corporation's only product is 65%.The company's monthly fixed expense is $573, 300 and the company's monthly target profit is $9, 100. Required: Determine the dollar sales to attain the company's target profit.Show your work!

Contribution margin is the amount remaining after:

A tile manufacturer has supplied the following data: If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to:

A tile manufacturer has supplied the following data: The company's contribution margin ratio is closest to:

Reynold Enterprises sells a single product for $25.The variable expense per unit is $15 and the fixed expense per unit is $5 at the current level of sales.The company's net operating income will increase by $10 if one more unit is sold.

The unit sales volume necessary to reach a target profit is determined by dividing the sum of the fixed expenses and the target profit by the contribution margin per unit.

Managerial Accounting and Cost Concepts

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Pricing Products and Services

Profitability Analysis

Least Squares Regression Computations

Activity-Based Absorption Costing

the Predetermined Overhead Rate and Capacity

Super-Variable Costing

Abc Action Analysis

the Concept of Present Value

Income Taxes and the Net Present Value Method

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

Filters