The income statement for Thompson Manufacturing Company is as follows: $\begin{array}{lr} \text { Sales }(10,000 \text { units) } & \$ 150,000 \\ \text { Variable expenses } & 102,000 \\ \text { Contribution margin } & \$ 48,000 \\ \text { Fixed expenses } & 36,000 \\ \text { Operating income } & \$ 12,000 \end{array}$ What is the contribution margin per unit?

A) $1.20 B) $4.80 C) $7.20 D) $120,000.00 A) $1.20 B) $4.80 C) $7.20 D) $120,000.00 B

$\begin{array}{lr} \text { Direct materials } & \$ 1.50 \\ \text { Direct labour } & 1.20 \\ \text { Variable overhead } & 0.90 \\ \text { Variable marketing expense } & 0.40 \end{array}$ -Refer to the Figure.What is the variable product expense per unit?

A) $1.30 B) $3.60 C) $4.00 D) $4.60 A) $1.30 B) $3.60 C) $4.00 D) $4.60

Oldman River Company expects to produce and sell 2,000 units next month.Data on costs follows: $\begin{array}{ll} \text { Per unit costs: } & \\ \text { Selling price } & \$ 40 \\ \text { Variable manufacturing costs } & \$ 10 \\ \text { Variable selling costs } & \$ 6\\\\\text { Total costs: }\\ \text { Fixed manufacturing costs } & \$ 16,000 \\ \text { Fixed selling costs } & \$ 8,000 \end{array}$ A. What is the break-even point in units? B. What is the break-even point in sales dollars? C. What is the expected operating income for next month? D. What is the margin of safety in dollars?

The answer of Oldman River Company expects to produce and...

$\begin{array}{lr} \text { Direct materials } & \$ 1.50 \\ \text { Direct labour } & 1.20 \\ \text { Variable overhead } & 0.90 \\ \text { Variable marketing expense } & 0.40 \end{array}$ -Refer to the Figure.What is the break-even point in sales dollars?

A) $21,670 B) $28,000 C) $58,330 D) $80,000 A) $21,670 B) $28,000 C) $58,330 D) $80,000

Exam 4: Costvolumeprofit Analysis: a Managerial Planning Tool

The income statement for Thompson Manufacturing Company is as follows: Sales (10,000 units) \ 150,000 Variable expenses 102,000 Contribution margin \ 48,000 Fixed expenses 36,000 Operating income \ 12,000 What is the contribution margin per unit?

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Question 1

Correct Answer:

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Information for Select Team Inc.is as follows: Sales \ 700,000 Variable costs \ 100,000 Fixed costs \ 200,000 A. $\quad$ What is the break-even point in sales doll ars? B. $\quad$ What sales (in dollars) are needed to generate an operating income of $\$ 100,000$ ?

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Question 2

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A. ($700,000 − $100,000)/$700,000 = 85.7% (rounded)
$200,000/85.7% = $233,372 (rounded)

B. ($700,000 − $100,000)/$700,000 = 85.7% (rounded)
($200,000 + $100,000)/0.857 = $350,058 (rounded)

Match each item with the correct statement below. -The units sold or expected to be sold or sales revenue earned or expected to be earned above the break-even volume

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Question 3

Correct Answer:

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The absorption income statement provides a good check to determine if the sale of a certain number of units really results in operating income of the given amount.

(True/False)

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Question 4

What is the equation to calculate contribution margin?

(Multiple Choice)

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Question 5

Direct materials \ 1.50 Direct labour 1.20 Variable overhead 0.90 Variable marketing expense 0.40 -Refer to the Figure.What is the variable product expense per unit?

(Multiple Choice)

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Question 6

In the equation to determine the number of units that must be sold to earn a target income,targeted income is added to fixed expense in the numerator.

(True/False)

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Question 7

The cost-volume-profit graph depicts the relationships among cost,volume,and profits by plotting the total revenue line and the total cost line on the graph.

(True/False)

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Question 8

Which is characteristic of operating leverage?

(Multiple Choice)

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Question 9

Which of the following distinguishes a profit-volume graph from a cost-volume-profits graph?

(Multiple Choice)

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Question 10

Match each item with the correct statement below. -The selling price per unit

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Question 11

Where is the break-even point on a cost-volume-profit graph?

(Multiple Choice)

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Question 12

To determine the number of units that must be sold to earn a target operating income,one can use the equation for operating income and replace the operating income term with the target operating income.

(True/False)

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Question 13

Product 1 has a contribution margin of $6.00 per unit,and Product 2 has a contribution margin of $7.50 per unit.Total fixed costs are $300,000.Sales mix and total volume varies from one period to another.Which statement is true?

(Multiple Choice)

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Question 14

Refer to the Figure.What is the percent change in operating income expected by Woods in the coming year?

(Multiple Choice)

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Question 15

Match each item with the correct statement below. -Fixed expenses that cannot be directly traced to individual segments and that are unaffected by the elimination of any one segment

(Multiple Choice)

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Question 16

Oldman River Company expects to produce and sell 2,000 units next month.Data on costs follows: Per unit costs: Selling price \ 40 Variable manufacturing costs \ 10 Variable selling costs \ 6 Total costs: Fixed manufacturing costs \ 16,000 Fixed selling costs \ 8,000 A. What is the break-even point in units? B. What is the break-even point in sales dollars? C. What is the expected operating income for next month? D. What is the margin of safety in dollars?

(Essay)

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Question 17

Common fixed expenses are the fixed costs that are NOT traceable to the segments and would remain even if one of the segments was eliminated.

(True/False)

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Question 18

Direct materials \ 1.50 Direct labour 1.20 Variable overhead 0.90 Variable marketing expense 0.40 -Refer to the Figure.What is the break-even point in sales dollars?

(Multiple Choice)

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Question 19

The break-even point in sales dollars is equal to the break-even units multiplied by the variable cost per unit.

(True/False)

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Question 20

Showing 1 - 20 of 160

The income statement for Thompson Manufacturing Company is as follows: Sales (10,000 units) \ 150,000 Variable expenses 102,000 Contribution margin \ 48,000 Fixed expenses 36,000 Operating income \ 12,000 What is the contribution margin per unit?

Information for Select Team Inc.is as follows: Sales \ 700,000 Variable costs \ 100,000 Fixed costs \ 200,000 A. $\quad$ What is the break-even point in sales doll ars? B. $\quad$ What sales (in dollars) are needed to generate an operating income of $\$ 100,000$ ?

Match each item with the correct statement below. -The units sold or expected to be sold or sales revenue earned or expected to be earned above the break-even volume

The absorption income statement provides a good check to determine if the sale of a certain number of units really results in operating income of the given amount.

What is the equation to calculate contribution margin?

Direct materials \ 1.50 Direct labour 1.20 Variable overhead 0.90 Variable marketing expense 0.40 -Refer to the Figure.What is the variable product expense per unit?

In the equation to determine the number of units that must be sold to earn a target income,targeted income is added to fixed expense in the numerator.

The cost-volume-profit graph depicts the relationships among cost,volume,and profits by plotting the total revenue line and the total cost line on the graph.

Which is characteristic of operating leverage?

Which of the following distinguishes a profit-volume graph from a cost-volume-profits graph?

Match each item with the correct statement below. -The selling price per unit

Where is the break-even point on a cost-volume-profit graph?

To determine the number of units that must be sold to earn a target operating income,one can use the equation for operating income and replace the operating income term with the target operating income.

Product 1 has a contribution margin of $6.00 per unit,and Product 2 has a contribution margin of $7.50 per unit.Total fixed costs are $300,000.Sales mix and total volume varies from one period to another.Which statement is true?

Refer to the Figure.What is the percent change in operating income expected by Woods in the coming year?

Match each item with the correct statement below. -Fixed expenses that cannot be directly traced to individual segments and that are unaffected by the elimination of any one segment

Common fixed expenses are the fixed costs that are NOT traceable to the segments and would remain even if one of the segments was eliminated.

Direct materials \ 1.50 Direct labour 1.20 Variable overhead 0.90 Variable marketing expense 0.40 -Refer to the Figure.What is the break-even point in sales dollars?

The break-even point in sales dollars is equal to the break-even units multiplied by the variable cost per unit.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Exam 4: Costvolumeprofit Analysis: a Managerial Planning Tool

The income statement for Thompson Manufacturing Company is as follows: Sales (10,000 units) \ 150,000 Variable expenses 102,000 Contribution margin \ 48,000 Fixed expenses 36,000 Operating income \ 12,000 What is the contribution margin per unit?

Information for Select Team Inc.is as follows: Sales \ 700,000 Variable costs \ 100,000 Fixed costs \ 200,000 A. \quad What is the break-even point in sales doll ars? B. \quad What sales (in dollars) are needed to generate an operating income of $100,000\$ 100,000$100,000 ?

Match each item with the correct statement below. -The units sold or expected to be sold or sales revenue earned or expected to be earned above the break-even volume

The absorption income statement provides a good check to determine if the sale of a certain number of units really results in operating income of the given amount.

What is the equation to calculate contribution margin?

Direct materials \ 1.50 Direct labour 1.20 Variable overhead 0.90 Variable marketing expense 0.40 -Refer to the Figure.What is the variable product expense per unit?

In the equation to determine the number of units that must be sold to earn a target income,targeted income is added to fixed expense in the numerator.

The cost-volume-profit graph depicts the relationships among cost,volume,and profits by plotting the total revenue line and the total cost line on the graph.

Which is characteristic of operating leverage?

Which of the following distinguishes a profit-volume graph from a cost-volume-profits graph?

Match each item with the correct statement below. -The selling price per unit

Where is the break-even point on a cost-volume-profit graph?

To determine the number of units that must be sold to earn a target operating income,one can use the equation for operating income and replace the operating income term with the target operating income.

Product 1 has a contribution margin of $6.00 per unit,and Product 2 has a contribution margin of $7.50 per unit.Total fixed costs are $300,000.Sales mix and total volume varies from one period to another.Which statement is true?

Refer to the Figure.What is the percent change in operating income expected by Woods in the coming year?

Match each item with the correct statement below. -Fixed expenses that cannot be directly traced to individual segments and that are unaffected by the elimination of any one segment

Common fixed expenses are the fixed costs that are NOT traceable to the segments and would remain even if one of the segments was eliminated.

Direct materials \ 1.50 Direct labour 1.20 Variable overhead 0.90 Variable marketing expense 0.40 -Refer to the Figure.What is the break-even point in sales dollars?

The break-even point in sales dollars is equal to the break-even units multiplied by the variable cost per unit.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Information for Select Team Inc.is as follows: Sales \ 700,000 Variable costs \ 100,000 Fixed costs \ 200,000 A. $\quad$ What is the break-even point in sales doll ars? B. $\quad$ What sales (in dollars) are needed to generate an operating income of $\$ 100,000$ ?