Follett Company expects to produce and sell 1,000 units next month.Data on costs follows: $\begin{array}{l} \text { Per unit costs: }\\ \text { Selling price } & \$ 10 \\ \text { Variable manufacturing costs } & \$ 1.50 \\ \text { Variable selling costs } & \$ 0.50\\\\ \text { Total costs: }\\ \text { Fixed manufacturing costs }&\$ 3,000 \\ \text { Fixed selling costs }&\$ 150 \end{array}$ A. What is the variable cost per unit? B. What is contribution margin per unit? C. What is the variable cost ratio? D. What is the contribution margin ratio?

The answer of Follett Company expects to produce and sell...

Given the following numbers from Books and Things,match the correct value with its appropriate term.Books and Things sells a product for $40.Unit cost information is as follows: $\begin{array}{lr} \text { Direct materials } & \$ 14 \\ \text { Direct labour } & \$ 6 \\ \text { Variable overhead } & \$ 8 \\ \text { Fixed overhead } & \$ 2 \end{array}$ Books and Things normally produces 100,000 units,and the fixed overhead rate is based on this amount.Fixed selling and administrative expense is $74,000. -Contribution margin per unit

A) $12 B) 30% C) $28 D) 70% E) $580,000 F)14,500 A) $12 B) 30% C) $28 D) 70% E) $580,000 F)14,500

Given the following numbers from Books and Things,match the correct value with its appropriate term.Books and Things sells a product for $40.Unit cost information is as follows: $\begin{array}{lr} \text { Direct materials } & \$ 14 \\ \text { Direct labour } & \$ 6 \\ \text { Variable overhead } & \$ 8 \\ \text { Fixed overhead } & \$ 2 \end{array}$ Books and Things normally produces 100,000 units,and the fixed overhead rate is based on this amount.Fixed selling and administrative expense is $74,000. -Break-even quantity (in units)

A) $12 B) 30% C) $28 D) 70% E) $580,000 F)14,500 A) $12 B) 30% C) $28 D) 70% E) $580,000 F)14,500

Exam 4: Costvolumeprofit Analysis: a Managerial Planning Tool

Bonda,Inc.sells its product for $90.It has a variable cost ratio of 50% and total fixed costs of $14,000.What is the break-even point in sales dollars?

(Multiple Choice)

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Question 21

What is total variable cost divided by sales revenue?

(Multiple Choice)

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Question 22

Refer to the Figure.What is Woods's revised expected operating income for the coming year?

(Multiple Choice)

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Question 23

It is impossible to calculate the break-even point for individual products in a multiple product firm because many of the fixed costs are common to a number of products.

(True/False)

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Question 24

What is the ratio of fixed expenses to the contribution margin ratio?

(Multiple Choice)

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Question 25

The Monterra Company provided the following information: Sales \ 500,000 Variable costs \ 100,000 Fixed costs \ 200,000 A. What is the contribution margin ratio? B. What is the level of sales in dollars necessary to generate a profit of $40,000? C. What is the contribution margin ratio if the sales price is increased by 10%? D. Using the information in part C, what level of sales in dollars is necessary to generate a profit of $40,000?

(Essay)

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Question 26

Suppose fixed costs increase.What will be the effect on the break-even point in units?

(Multiple Choice)

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Question 27

What items is the sales mix the relative combination of?

(Multiple Choice)

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Question 28

Suppose the contribution margin per unit decreases.What will be the effect on the break-even point in units?

(Multiple Choice)

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Question 29

Refer to the Figure.What is the break-even point in sales dollars?

(Multiple Choice)

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Question 30

If a multi-product company simply wants to know the overall break-even point,it is easiest to use the break-even in sales revenue approach.

(True/False)

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Question 31

Follett Company expects to produce and sell 1,000 units next month.Data on costs follows: Per unit costs: Selling price \ 10 Variable manufacturing costs \ 1.50 Variable selling costs \ 0.50 Total costs: Fixed manufacturing costs \ 3,000 Fixed selling costs \ 150 A. What is the variable cost per unit? B. What is contribution margin per unit? C. What is the variable cost ratio? D. What is the contribution margin ratio?

(Essay)

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Question 32

What is the contribution margin?

(Multiple Choice)

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Question 33

East Side Company produces two products,X and Y,which account for 60% and 40%,respectively,of total sales dollars.Contribution margin ratios are 50% for X and 25% for Y.Total fixed costs are $120,000.What is East Side's break-even point in sales dollars?

(Multiple Choice)

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Question 34

Given the following numbers from Books and Things,match the correct value with its appropriate term.Books and Things sells a product for $40.Unit cost information is as follows: Direct materials \ 14 Direct labour \ 6 Variable overhead \ 8 Fixed overhead \ 2 Books and Things normally produces 100,000 units,and the fixed overhead rate is based on this amount.Fixed selling and administrative expense is $74,000. -Contribution margin per unit

(Multiple Choice)

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Question 35

How can a multi-product firm determine its break-even point?

(Essay)

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Question 36

Which graph depicts the relationships among total variable costs,total fixed costs,number of units,and operating income?

(Multiple Choice)

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Question 37

Given the following numbers from Books and Things,match the correct value with its appropriate term.Books and Things sells a product for $40.Unit cost information is as follows: Direct materials \ 14 Direct labour \ 6 Variable overhead \ 8 Fixed overhead \ 2 Books and Things normally produces 100,000 units,and the fixed overhead rate is based on this amount.Fixed selling and administrative expense is $74,000. -Break-even quantity (in units)

(Multiple Choice)

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Question 38

Which of the following measures the sensitivity of profit changes to changes in sales volume?

(Multiple Choice)

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Question 39

What "what-if" technique examines the impact on an answer as a result of changes in underlying assumptions?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 160

Bonda,Inc.sells its product for $90.It has a variable cost ratio of 50% and total fixed costs of $14,000.What is the break-even point in sales dollars?

What is total variable cost divided by sales revenue?

Refer to the Figure.What is Woods's revised expected operating income for the coming year?

It is impossible to calculate the break-even point for individual products in a multiple product firm because many of the fixed costs are common to a number of products.

What is the ratio of fixed expenses to the contribution margin ratio?

Suppose fixed costs increase.What will be the effect on the break-even point in units?

What items is the sales mix the relative combination of?

Suppose the contribution margin per unit decreases.What will be the effect on the break-even point in units?

Refer to the Figure.What is the break-even point in sales dollars?

If a multi-product company simply wants to know the overall break-even point,it is easiest to use the break-even in sales revenue approach.

What is the contribution margin?

East Side Company produces two products,X and Y,which account for 60% and 40%,respectively,of total sales dollars.Contribution margin ratios are 50% for X and 25% for Y.Total fixed costs are $120,000.What is East Side's break-even point in sales dollars?

How can a multi-product firm determine its break-even point?

Which graph depicts the relationships among total variable costs,total fixed costs,number of units,and operating income?

Which of the following measures the sensitivity of profit changes to changes in sales volume?

What "what-if" technique examines the impact on an answer as a result of changes in underlying assumptions?

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

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