Exam 21: Cost-Volume-Profit Analysis

Use this information for Rusty Co. to answer the questions that follow. ​ Rusty Co. sells two products, X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are as follows: ​ ​ -What was Rusty Co.'s weighted average unit contribution margin?

The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents the

Which of the following activity bases would be the most appropriate for food costs of a hospital?

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 14,500 units.

Perfect Stampers makes and sells aftermarket hub caps. The variable cost for each hub cap is $4.75, and the hub cap sells for $9.95. Perfect Stampers has fixed costs per month of $3,120. Compute the contribution margin per unit and break-even sales in units and in dollars for the month.

Silver River Company sells products S and T and has made the following estimates for the coming year:? Fixed costs are estimated at $202,400. Determine (a) the estimated sales in units of the overall product necessary to reach the break-even point for the coming year, (b) the estimated number of units of each product necessary to be sold to reach the break-even point for the coming year, and (c) the estimated sales in units of the overall product necessary to realize an operating income of $119,600 for the coming year. If required, round interim calculations to two decimal places.

Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks were manufactured at a total cost of $59,000. In the month of lowest production the company made 1,125 desks at a cost of $38,000. Using the high-low method of cost estimation, total fixed costs are

​ (a) If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio? (b) If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?

If a business had sales of $4,000,000 and a margin of safety of 25%, the break-even point was

Given the following cost data, what type of cost is shown?​ ​

Define operating leverage. Explain the relationship between a company's operating leverage and how a change in sales is expected to impact profits.

Johnson Plumbing's fixed costs are $700,000 and the unit contribution margin is $17. What amount of units (rounded to a whole number) must be sold in order to realize an operating income of $100,000?

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

Harley Company has sales of $500,000, variable costs are 75% of sales, and operating income is $40,000. What is Harley's operating leverage?

What was Carter Co.'s sales mix last year?

For the current year ending April 30, Hal Company expects fixed costs of $60,000, a unit variable cost of $70, and anticipated break-even of 1,715 sales units. (a)Compute the unit sales price. (b)Compute the sales (units) required to realize an operating profit of $8,000.Round answer to the nearest whole number.

A company with a break-even point at $900,000 in sales revenue had fixed costs of $225,000. When actual sales were $1,000,000, variable costs were $750,000. Determine (a) the margin of safety expressed in dollars, (b) the margin of safety expressed as a percentage of sales, (c) the contribution margin ratio, and (d) the operating income.

Zipee Inc.'s unit selling price is $90, 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?

Rocky Company reports the following data:​Sales$800,000Variable costs300,000Fixed costs120,000​Rocky Company's operating leverage is

Match the following terms with their definitions. -Remain the same in total dollar amount as the level of activity changes