Question 1

Zipee Inc.'s unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units.How much will operating income change if sales increase by 5,000 units?

Accepted Answer

A) $125,000 decrease 
B) $175,000 increase 
C) $75,000 increase 
D) $247,500 increase

Question 2

If fixed costs are $500,000, the unit selling price is $55, and the unit variable costs are $30, what is the break-even sale units if fixed costs are increased by $80,000?

Accepted Answer

A) 10,545 units 
B) 19,333 units 
C) 23,200 units 
D) 25,000 units

Question 3

If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would

Accepted Answer

A) decrease 
B) increase 
C) remain the same 
D) increase or decrease, depending upon the percentage increase in wage rates

Question 4

Piper Technology's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales required to realize an operating income of $200,000?

Accepted Answer

A) 14,167 units 
B) 12,500 units 
C) 16,000 units 
D) 11,538 units

Question 5

The Rocky Company reports the following data:  Rocky Company's operating leverage is

Accepted Answer

A) 6.7 
B) 2.7 
C) 1.0 
D) 1.3

Exam 4: Cost Behavior and Cost-Volume-Profit Analysis

Zipee Inc.'s unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units.How much will operating income change if sales increase by 5,000 units?

If fixed costs are $500,000, the unit selling price is $55, and the unit variable costs are $30, what is the break-even sale units if fixed costs are increased by $80,000?

If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would

Piper Technology's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales required to realize an operating income of $200,000?

The Rocky Company reports the following data: Rocky Company's operating leverage is