The following information is available for Chap Company: $\begin{array}{ll} \text {Sales }&\$350,000\\ \text {Total fixed expenses. }&\$60,000\\ \text {Cost of goods sold }&120,000\\ \text {Total variable expenses }&100,000\\ \end{array}$ Which amount would you find on Chap's CVP income statement?

A) contribution margin of $250,000 B) contribution margin of $190,000 C) gross profit of $230,000 D) gross profit of $190,000 A) contribution margin of $250,000 B) contribution margin of $190,000 C) gross profit of $230,000 D) gross profit of $190,000

Gift Gallery sold 2,000 Zooglars during 2016.Information is provided concerning the Zooglar product: $\begin{array}{cc} \text {Sales.........................} &\$60,000\\ \text {Variable costs............. } &24,000\\ \text {Fixed costs................. } &\underline{10,000}\\ \text {Net income................. } &\underline{\underline{\$26,000}}\\ \end{array}$ If Gift Gallery sells 30 more units, by how much will its profit increase?

A) $18 B) $540 C) $390 D) $900 A) $18 B) $540 C) $390 D) $900

Use the following information for items Brad Sherwood Corporation sells two types of computers; one is designed for audio applications and the other for video applications.Sherwood incurs $300,125 in fixed costs. Per unit data on the two products is presented blow: $\begin{array}{cc} \underline{\text { Unit data}} &\underline{\text { Audio computer }} & \underline{\text { Video computer} } \\ \text {Selling price}&\$1,500&\$1,750\\ \text {Variable costs}&\underline{1,100}&\underline{1,200}\\ \text { Contribution margin}&\underline{\$400}&\underline{\$550}\\ \text { Sales mix}&75\%&25\% \end{array}$ -How many audio computers will be sold at the break-even point?

A) 477 B) 172 C) 515 D) 158 A) 477 B) 172 C) 515 D) 158

Exam 6: Decision-Making: Costvolumeprofit

Use the following information for items Ed Green Corporation has two divisions; Outdoor Sports and Indoor Sports.The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports.Green incurs $2,420,000 in fixed costs.The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 50%. -What will sales be for the Outdoor Sports Division at the break-even point?

(Multiple Choice)

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Question 101

Net income can be increased or decreased by changing the sales mix.

(True/False)

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Question 102

The following information is available for Chap Company: Sales \3 50,000 Total fixed expenses. \6 0,000 Cost of goods sold 120,000 Total variable expenses 100,000 Which amount would you find on Chap's CVP income statement?

(Multiple Choice)

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Question 103

Hardage Company has a contribution margin per unit of $15 and a contribution margin ratio of 60%.How much is the selling price of each unit?

(Multiple Choice)

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Question 104

Wardley Corporation sells its product for $40.The variable costs are $18 per unit.Fixed costs are $16,000.The company is considering the purchase of an automated machine that will result in a $2 reduction in unit variable costs and an increase of $5,000 in fixed costs.Which of the following is true about the break-even point in units?

(Multiple Choice)

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Question 105

Company A and Company B sell their products for exactly the same sales price.Both have the same annual total costs.Company A's variable and fixed costs at break-even total $60,000 and $30,000 respectively.Company B's variable and fixed costs at break-even total $30,000 and $60,000 respectively.Both companies have the same net income.If both companies experience an increase in sales, which company will have the higher net income?

(Multiple Choice)

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Question 106

Stacker requires sales of $500,000 to cover its fixed costs of $100,000 and to earn net income of $80,000.What percent are variable costs of sales?

(Multiple Choice)

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Question 107

Sutton Company produces flash drives for computers, which it sells for $20 each.Each flash drive costs $6 of variable costs to make.During April, 1,000 drives were sold.Fixed costs for April were $4.20 per unit for a total of $4,200 for the month.If variable costs decrease by 10%, what happens to the break-even level of units per month for Sutton Company?

(Multiple Choice)

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Question 108

Gift Gallery sold 2,000 Zooglars during 2016.Information is provided concerning the Zooglar product: Sales......................... \6 0,000 Variable costs............. 24,000 Fixed costs................. Net income................. If Gift Gallery sells 30 more units, by how much will its profit increase?

(Multiple Choice)

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Question 109

Goose Bay Sync's management established its target net income for the year.What did the company do?

(Multiple Choice)

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Question 110

Use the following information for items Brad Sherwood Corporation sells two types of computers; one is designed for audio applications and the other for video applications.Sherwood incurs $300,125 in fixed costs. Per unit data on the two products is presented blow: Selling price \1 ,500 \1 ,750 Variable costs Contribution margin Sales mix 75\% 25\% -How many audio computers will be sold at the break-even point?

(Multiple Choice)

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Question 111

Phi Kappa is planning to hold a seminar for students at the University Centre.It has two options: OPTION 1: Fixed rental cost of $1,000 and $12 per person for books Or OPTION 2: Fixed rental cost of $3,000 and $8 per person for books Tickets will be $5 per student.Other items will be donated by recruiters wishing to network with students.Which option will cause the biggest loss if very few students attend?

(Multiple Choice)

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Question 112

Barcelona Bagpipes produces two models: Model 24 has sales of 200 units with a contribution margin of $35 each; Model 26 has sales of 75 units with a contribution margin of $37 each.If sales of Model 26 increase by 50 units, how much will profit change?

(Multiple Choice)

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Question 113

Fallow-Hawke is a non-profit organization that captures stray deer from residential communities.Fixed costs are $10,000.The variable cost of capturing deer is $10.00 each.Fallow-Hawke is funded by local philanthropy in the amount of $32,000 for 2016.How many deer can Fallow-Hawke capture during 2016?

(Multiple Choice)

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Question 114

T'pol Corporation is considering a plan that will increase total units sold.The plan will cause a shift from high- to low-margin sales.The plan will

(Multiple Choice)

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Question 115

Which of the following is the correct formula for the contribution margin per unit?

(Multiple Choice)

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Question 116

Use the following information for items Ed Green Corporation has two divisions; Outdoor Sports and Indoor Sports.The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports.Green incurs $2,420,000 in fixed costs.The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 50%. -What will be the total contribution margin at the break-even point?

(Multiple Choice)

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Question 117

Sarks Company has a contribution margin of $150,000 and a contribution margin ratio of 30%.How much are total variable costs?

(Multiple Choice)

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Question 118

The contribution margin ratio is calculated by dividing the unit contribution margin by the unit sales price.

(True/False)

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Question 119

Tiny Tots Toys has actual sales of $400,000 and a break-even point of $260,000.How much is its margin of safety ratio?

(Multiple Choice)

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Question 120

Showing 101 - 120 of 124

Net income can be increased or decreased by changing the sales mix.

The following information is available for Chap Company: Sales \3 50,000 Total fixed expenses. \6 0,000 Cost of goods sold 120,000 Total variable expenses 100,000 Which amount would you find on Chap's CVP income statement?

Hardage Company has a contribution margin per unit of $15 and a contribution margin ratio of 60%.How much is the selling price of each unit?

Stacker requires sales of $500,000 to cover its fixed costs of $100,000 and to earn net income of $80,000.What percent are variable costs of sales?

Goose Bay Sync's management established its target net income for the year.What did the company do?

Barcelona Bagpipes produces two models: Model 24 has sales of 200 units with a contribution margin of $35 each; Model 26 has sales of 75 units with a contribution margin of $37 each.If sales of Model 26 increase by 50 units, how much will profit change?

T'pol Corporation is considering a plan that will increase total units sold.The plan will cause a shift from high- to low-margin sales.The plan will

Which of the following is the correct formula for the contribution margin per unit?

Sarks Company has a contribution margin of $150,000 and a contribution margin ratio of 30%.How much are total variable costs?

The contribution margin ratio is calculated by dividing the unit contribution margin by the unit sales price.

Tiny Tots Toys has actual sales of $400,000 and a break-even point of $260,000.How much is its margin of safety ratio?

Managerial Accounting

Managerial Cost Concepts and Cost Behaviour Analysis

Job-Order Cost Accounting

Process Cost Accounting

Activity-Based Costing

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

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