Exam 6: Reporting and Analyzing Inventory

Swanson Company has two divisions; Sporting Goods and Sports Gear.The sales mix is 65% for Sporting Goods and 35% for Sports Gear.Swanson incurs $4,440,000 in fixed costs.The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. -The weighted-average contribution margin ratio is

If Sprinkle Industries has a margin of safety ratio of .60, it could sustain a 60 percent decline in sales before it would be operating at a loss.

Roosevelt Corporation has a weighted-average unit contribution margin of $40 for its two products, Standard and Supreme.Expected sales for Roosevelt are 40,000 Standard and 60,000 Supreme.Fixed expenses are $1,800,000.How many Standards would Roosevelt sell at the break-even point?

When a company has limited resources to manufacture products, it should manufacture those products which have the highest contribution margin per unit.

Roosevelt Corporation has a weighted-average unit contribution margin of $40 for its two products, Standard and Supreme.Expected sales for Roosevelt are 40,000 Standard and 60,000 Supreme.Fixed expenses are $1,800,000.At the expected sales level, Roosevelt's net income will be

The required sales in units to achieve a target net income is

Ramirez Corporation sells two types of computer chips.The sales mix is 30% (Q-Chip) and 70% (Q-Chip Plus).Q-Chip has variable costs per unit of $60 and a selling price of $100.Q-Chip Plus has variable costs per unit of $70 and a selling price of $130.Ramirez's fixed costs are $540,000.How many units of Q-Chip would be sold at the break-even point?

MacCloud Industries has two divisions-Standard and Premium.Each division has hundreds of different types of tennis racquets and tennis products.The following information is available: Standard Division Premium Division Total Sales \ 400,000 \ 600,000 \1 ,000,000 Variable costs 280,000 360,000 Contribution margin \1 20,000 \2 40,000 Total fixed costs \3 20,000 -What is the break-even point in dollars?

The break-even point in dollars is variable costs divided by the weighted-average contribution margin ratio.

Swanson Company has two divisions; Sporting Goods and Sports Gear.The sales mix is 65% for Sporting Goods and 35% for Sports Gear.Swanson incurs $4,440,000 in fixed costs.The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. -What will be the total contribution margin at the break-even point?

In 2012, Carow sold 3,000 units at $500 each.Variable expenses were $250 per unit, and fixed expenses were $250,000.The same selling price is expected for 2013.Carow is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%.What is Carow's break-even point in units for 2013?

Moonwalker's CVP income statement included sales of 4,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $88,000. -Contribution margin is

Mercantile Corporation has sales of $2,000,000, variable costs of $1,100,000, and fixed costs of $750,000.Mercantile's margin of safety ratio is

Swanson Company has two divisions; Sporting Goods and Sports Gear.The sales mix is 65% for Sporting Goods and 35% for Sports Gear.Swanson incurs $4,440,000 in fixed costs.The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. -The break-even point in dollars is

The CVP income statement classifies costs

According to the theory of constraints, a company must identify its constraints and find ways to reduce or eliminate them.

What is the key factor in determining sales mix if a company has limited resources?

When a company has limited resources, management must decide which products to make and sell in order to maximize net income.

A company with a higher contribution margin ratio is

The margin of safety ratio is