Exam 21: Cost Behavior and Decisions Using C-V-P Analysis

Newport Corporation is planning to sell 50,000 lawn mowers for $100 each. The fixed costs are $2,000,000. If the company realizes a profit of $400,000, what would the variable costs be?

A firm will break even when:

As activity level increases within the relevant range, total variable costs usually will:

Within the relevant range some fixed costs may actually be:

The slope of the line in a scattergraph represents the:

Exhibit 21-8 Use the profit graph below to answer the following question(s). -Refer to Exhibit 21-8. Area A on the profit graph represents the:

Given the following information, draw a profit graph for Viajem Company.

Which of the following is the formula used to calculate the slope of the regression line on a scattergraph?

The excess of sales over variable costs is equal to:

is the formula for:

If total sales are $460,000, total variable costs are $138,000, and total fixed costs are $184,000, the contribution margin ratio is:

Which of the following is a common method of analyzing mixed costs?

If the fixed costs relative to a specific product increase while the variable costs and sales price remain constant, the break-even point will:

Anderson Corporation sells picture calendars for $10 each. The fixed costs of production are $300,000, and the variable costs are 60% of the selling price. The company desires to make a profit of $120,000. How many calendars must it sell?

After the break-even point is reached, a firm that has a per-unit contribution margin of $20 will have a $500 increase in profits when sales increase by:

Which of the following is the formula for the high-low method of analyzing mixed costs?

Which of the following types of costs remain constant per unit within a certain relevant range?

Stites Corporation will make $100,000 if it sells 8,000 bathtubs for $200 per unit. If the contribution margin is 30%, what will the fixed costs be?

Within the relevant range, the fixed cost per unit:

Rockin' H makes and sells saddles. The following information is from Rockin' H's 2012 records: Rockin' H expects all the information above to be the same in 2013. For 2013, determine: