Herman Loebl Company,a producer of salsa,has the following information: $\begin{array}{ll} \text { Income tax rate } & 30 \% \\ \text { Selling price per unit } & \$ 8.00 \\ \text { Variable cost per unit } & \$ 3.00 \\ \text { Total fixed costs } & \$ 90,000.00 \end{array}$ The contribution margin per unit is ________.

A) $2.00 B) $3.00 C) $5.00 D) $8.00 A) $2.00 B) $3.00 C) $5.00 D) $8.00

The Troy Company has the following information available: $\begin{array}{ll} \text { Total fixed costs }&\$400,000\\ \text { Expected sales (units) } & 100,000 \\ \text { Contribution margin per unit } & \$ 7.50 \\ \text { Taxrate } & 30 \% \end{array}$ What is the after-tax net income?

A) $245,000 B) $280,000 C) $350,000 D) $400,000 A) $245,000 B) $280,000 C) $350,000 D) $400,000

Cornwell Company,a producer of electronic components,has the following information: $\begin{array}{ll} \text { Income tax rate } & 30 \% \\ \text { Selling price per unit } & \$ 8.00 \\ \text { Variable cost per unit } & \$ 3.00\\\text { Total fixed costs }&\$120,000.00 \end{array}$ The break-even point in dollars is ________.

A) $150,000 B) $180,000 C) $192,000 D) $320,000 A) $150,000 B) $180,000 C) $192,000 D) $320,000

Assume the following information for Rodney Company: $\begin{array}{ll} \text { Selling price per unit } & \$ 100 \\ \text { Variable cost per unit } & \$ 80 \\ \text { Total fixed costs } & \$ 80,000 \\ \text { After-tax net income } & \$ 24,000 \\ \text { Taxrate } & 40 \% \end{array}$ To achieve the targeted after-tax net income,what amount of sales in dollars is necessary?

A) $400,000 B) $520,000 C) $600,000 D) $660,000 A) $400,000 B) $520,000 C) $600,000 D) $660,000

Henricks Company has the following information available: $\begin{array}{ll} \text { Revencie }&\$500,000\\ \text { Variable production costs }&\$100,000\\ \text { Fixed production costs }&\$100,000\\ \text { Variable selling costs } & \$ 50,000 \\ \text { Fixed selling costs } & \$ 50,000 \end{array}$ What is the gross margin and net income?

A) $200,000; $200,000 B) $250,000; $150,000 C) $300,000; $200,000 D) $400,000: $200,000 A) $200,000; $200,000 B) $250,000; $150,000 C) $300,000; $200,000 D) $400,000: $200,000

The following information is available for Kismer Corporation: $\begin{array}{ll} \text { Total fixed costs }&\$313,500\\ \text { Variable costs per unit } & \$ 90 \\ \text { Selling price per unit } & \$ 150 \end{array}$ If management has a targeted net income of $59,400,then sales revenue should be ________.

A) $239,721 B) $580,067 C) $671,220 D) $932,250 A) $239,721 B) $580,067 C) $671,220 D) $932,250

Exam 2: Introduction to Cost Behavior and Cost Volume Profit Relationships

Lorna Corporation has determined the contribution margin ratio is 35% and the income tax rate is 40%. Required: A) Assume break-even volume in dollars is $1,500,000. What are total fixed costs? B) Assume Lorna Corporation wants after-tax net income of $300,000. What volume of sales in dollars is necessary to achieve this net income?

(Essay)

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(35)

Question 61

On a cost-volume-profit graph,at the point where the Total Revenue line intersects the Total Cost line,________.

(Multiple Choice)

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Question 62

Sharpie Company has variable costs of 75% of total revenues and fixed costs of $40 million per year.What is the break-even point in dollars?

(Multiple Choice)

4.9/5

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Question 63

An assumption of the CVP analysis is that changes in efficiency are expected.

(True/False)

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Question 64

Herman Loebl Company,a producer of salsa,has the following information: Income tax rate 30\% Selling price per unit \ 8.00 Variable cost per unit \ 3.00 Total fixed costs \ 90,000.00 The contribution margin per unit is ________.

(Multiple Choice)

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Question 65

The Troy Company has the following information available: Total fixed costs \4 00,000 Expected sales (units) 100,000 Contribution margin per unit \ 7.50 Taxrate 30\% What is the after-tax net income?

(Multiple Choice)

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Question 66

A cost-volume-profit graph has a line for and a line for .

(Multiple Choice)

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Question 67

The sales price is $30 per unit,the contribution margin is $8 per unit and total fixed costs are $32,000.What is the break-even point in units?

(Multiple Choice)

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Question 68

With mixed costs,the element is unchanged over the relevant range and the element varies proportionately with cost-driver activity.

(Multiple Choice)

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Question 69

Cornwell Company,a producer of electronic components,has the following information: Income tax rate 30\% Selling price per unit \ 8.00 Variable cost per unit \ 3.00 Total fixed costs \1 20,000.00 The break-even point in dollars is ________.

(Multiple Choice)

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Question 70

The break-even point may be reduced by increasing the per unit variable cost.

(True/False)

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Question 71

If an individual chunk of step costs applies to a large range of cost-driver activity,the step costs are treated as ________ within that range.

(Multiple Choice)

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Question 72

An increase in total variable costs usually indicates that ________.

(Multiple Choice)

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Question 73

Assume the following information for Rodney Company: Selling price per unit \ 100 Variable cost per unit \ 80 Total fixed costs \ 80,000 After-tax net income \ 24,000 Taxrate 40\% To achieve the targeted after-tax net income,what amount of sales in dollars is necessary?

(Multiple Choice)

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Question 74

Henricks Company has the following information available: Revencie \5 00,000 Variable production costs \1 00,000 Fixed production costs \1 00,000 Variable selling costs \ 50,000 Fixed selling costs \ 50,000 What is the gross margin and net income?

(Multiple Choice)

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Question 75

The following information is available for Kismer Corporation: Total fixed costs \3 13,500 Variable costs per unit \ 90 Selling price per unit \ 150 If management has a targeted net income of $59,400,then sales revenue should be ________.

(Multiple Choice)

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Question 76

If the contribution margin per unit increases,what is the effect on the break-even point? (Assume no other changes.)

(Multiple Choice)

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Question 77

In a small construction firm,a crew supervisor is added for every ten workers employed.The salaries of the crew supervisors are a ________.

(Multiple Choice)

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Question 78

On a cost-volume-profit graph,the net profit area is found ________.

(Multiple Choice)

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Question 79

Variable costs per unit of the cost driver increase when the cost-driver level increases in the relevant range.

(True/False)

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Question 80

On a cost-volume-profit graph,at the point where the Total Revenue line intersects the Total Cost line,________.

Sharpie Company has variable costs of 75% of total revenues and fixed costs of $40 million per year.What is the break-even point in dollars?

An assumption of the CVP analysis is that changes in efficiency are expected.

Herman Loebl Company,a producer of salsa,has the following information: Income tax rate 30\% Selling price per unit \ 8.00 Variable cost per unit \ 3.00 Total fixed costs \ 90,000.00 The contribution margin per unit is ________.

The Troy Company has the following information available: Total fixed costs \4 00,000 Expected sales (units) 100,000 Contribution margin per unit \ 7.50 Taxrate 30\% What is the after-tax net income?

A cost-volume-profit graph has a line for and a line for .

The sales price is $30 per unit,the contribution margin is $8 per unit and total fixed costs are $32,000.What is the break-even point in units?

With mixed costs,the element is unchanged over the relevant range and the element varies proportionately with cost-driver activity.

Cornwell Company,a producer of electronic components,has the following information: Income tax rate 30\% Selling price per unit \ 8.00 Variable cost per unit \ 3.00 Total fixed costs \1 20,000.00 The break-even point in dollars is ________.

The break-even point may be reduced by increasing the per unit variable cost.

If an individual chunk of step costs applies to a large range of cost-driver activity,the step costs are treated as ________ within that range.

An increase in total variable costs usually indicates that ________.

Assume the following information for Rodney Company: Selling price per unit \ 100 Variable cost per unit \ 80 Total fixed costs \ 80,000 After-tax net income \ 24,000 Taxrate 40\% To achieve the targeted after-tax net income,what amount of sales in dollars is necessary?

Henricks Company has the following information available: Revencie \5 00,000 Variable production costs \1 00,000 Fixed production costs \1 00,000 Variable selling costs \ 50,000 Fixed selling costs \ 50,000 What is the gross margin and net income?

The following information is available for Kismer Corporation: Total fixed costs \3 13,500 Variable costs per unit \ 90 Selling price per unit \ 150 If management has a targeted net income of $59,400,then sales revenue should be ________.

If the contribution margin per unit increases,what is the effect on the break-even point? (Assume no other changes.)

In a small construction firm,a crew supervisor is added for every ten workers employed.The salaries of the crew supervisors are a ________.

On a cost-volume-profit graph,the net profit area is found ________.

Variable costs per unit of the cost driver increase when the cost-driver level increases in the relevant range.

Managerial Accounting,the Business Organization,and Professional Ethics

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 2: Introduction to Cost Behavior and Cost Volume Profit Relationships

On a cost-volume-profit graph,at the point where the Total Revenue line intersects the Total Cost line,________.

Sharpie Company has variable costs of 75% of total revenues and fixed costs of $40 million per year.What is the break-even point in dollars?

An assumption of the CVP analysis is that changes in efficiency are expected.

Herman Loebl Company,a producer of salsa,has the following information: Income tax rate 30\% Selling price per unit \ 8.00 Variable cost per unit \ 3.00 Total fixed costs \ 90,000.00 The contribution margin per unit is ________.

The Troy Company has the following information available: Total fixed costs \4 00,000 Expected sales (units) 100,000 Contribution margin per unit \ 7.50 Taxrate 30\% What is the after-tax net income?

A cost-volume-profit graph has a line for ________ and a line for ________.

The sales price is $30 per unit,the contribution margin is $8 per unit and total fixed costs are $32,000.What is the break-even point in units?

With mixed costs,the ________ element is unchanged over the relevant range and the ________ element varies proportionately with cost-driver activity.

Cornwell Company,a producer of electronic components,has the following information: Income tax rate 30\% Selling price per unit \ 8.00 Variable cost per unit \ 3.00 Total fixed costs \1 20,000.00 The break-even point in dollars is ________.

The break-even point may be reduced by increasing the per unit variable cost.

If an individual chunk of step costs applies to a large range of cost-driver activity,the step costs are treated as ________ within that range.

An increase in total variable costs usually indicates that ________.

Assume the following information for Rodney Company: Selling price per unit \ 100 Variable cost per unit \ 80 Total fixed costs \ 80,000 After-tax net income \ 24,000 Taxrate 40\% To achieve the targeted after-tax net income,what amount of sales in dollars is necessary?

Henricks Company has the following information available: Revencie \5 00,000 Variable production costs \1 00,000 Fixed production costs \1 00,000 Variable selling costs \ 50,000 Fixed selling costs \ 50,000 What is the gross margin and net income?

The following information is available for Kismer Corporation: Total fixed costs \3 13,500 Variable costs per unit \ 90 Selling price per unit \ 150 If management has a targeted net income of $59,400,then sales revenue should be ________.

If the contribution margin per unit increases,what is the effect on the break-even point? (Assume no other changes.)

In a small construction firm,a crew supervisor is added for every ten workers employed.The salaries of the crew supervisors are a ________.

On a cost-volume-profit graph,the net profit area is found ________.

Variable costs per unit of the cost driver increase when the cost-driver level increases in the relevant range.

Managerial Accounting,the Business Organization,and Professional Ethics

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

A cost-volume-profit graph has a line for and a line for .

With mixed costs,the element is unchanged over the relevant range and the element varies proportionately with cost-driver activity.