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

A) $5.00 B) $5.40 C) $6.00 D) $6.30 A) $5.00 B) $5.40 C) $6.00 D) $6.30

The following data pertain to the three products produced by Rona Corporation: \[\begin{array} { l r r r } & \mathrm { A } & \mathrm { B } & \mathrm { C } \\ \text { Selling price per unit }& \$ 5.00 & \$ 7.00 & \$ 6.00 \\ \text { Variable costs per unit } & 4.00 & 5.00 & 3.00 \\ \text { Contribution margin per unit }& \$ 1.00 & \$ 2.00 & \$ 3.00 \end{array}\] Fixed costs are $90,000 per month. Of all units sold,60% are Product A,30% are Product B,and 10% are Product C. What is the monthly break-even point for total units?

A) 36,000 units B) 45,000 units C) 60,000 units D) 180,000 units A) 36,000 units B) 45,000 units C) 60,000 units D) 180,000 units

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. -Variable cost 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

Exam 4: Costvolumeprofit Analysis: a Managerial Planning Tool

Firm X and Firm Y compete within the same industry.Firm X manufactures its product using large amounts of direct labour.Firm Y has replaced direct labour with investment in machinery.Projected sales for both firms are 15% less than in the previous year.What will be the projected profits for Firm X compared to Firm Y?

(Multiple Choice)

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Question 61

Catelina Company manufactures two products.Information about the two products is as follows: Product A Froduct B Selling price per unit \ 80 \ 30 Variable costs per unit 45 15 Contribution margin per unit \ 35 \ 15 The company expects fixed costs to be $189,000.The firm expects 60% of its sales (in units)to be Product A (a sales mix of 3:2). A. $\quad$ Calculate the contribution margin per package. B. $\quad$ Determine the break-even point in units for Products $A$ and $B$ . C. $\quad$ Determine the level of sales (in dollars) necessary to generate operating income of $\$ 135,000$ .

(Essay)

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Question 62

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

(Multiple Choice)

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Question 63

The following data pertain to the three products produced by Rona Corporation: Selling price per unit \ 5.00 \ 7.00 \ 6.00 Variable costs per unit 4.00 5.00 3.00 Contribution margin per unit \ 1.00 \ 2.00 \ 3.00 Fixed costs are $90,000 per month. Of all units sold,60% are Product A,30% are Product B,and 10% are Product C. What is the monthly break-even point for total units?

(Multiple Choice)

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Question 64

Refer to the Figure.Plastic Gym expects tree house demand to increase from 4,000 to 8,000 units.What is the sales revenue at break-even?

(Multiple Choice)

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Question 65

What formula is used to calculate contribution margin ratio?

(Multiple Choice)

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Question 66

In a multi-product firm,if the sales mix changes,the break-even points for each product will not change.

(True/False)

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Question 67

What is operating leverage the relative mix of?

(Multiple Choice)

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Question 68

TriTech Company sells a product for $12.Variable costs are $6 per unit,and total fixed costs are $6,000.How many units must Melody sell to earn an operating profit of $240?

(Multiple Choice)

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Question 69

What is the term for the units sold or expected to be sold,or the sales revenue earned or expected to be earned,above the break-even volume?

(Multiple Choice)

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Question 70

What are the assumptions underlying cost-volume-profit analysis?

(Essay)

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Question 71

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. -Variable cost per unit

(Multiple Choice)

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Question 72

Operating leverage is the use of fixed cost to extract higher percentage changes in profits as sales activity changes.

(True/False)

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Question 73

Match each item with the correct statement below. -Break-even point

(Multiple Choice)

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Question 74

If variable costs per unit increase,the break-even point will increase.

(True/False)

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Question 75

The contribution margin ratio is equal to the 1 minus the variable cost ratio.

(True/False)

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Question 76

At the break-even point,revenue is equal to the contribution margin.

(True/False)

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Question 77

Refer to the Figure.What is the total contribution margin of six practice models,three deluxe models,and one professional model?

(Multiple Choice)

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Question 78

Match each item with the correct statement below. -Sales revenue minus total variable cost or price minus unit variable cost

(Multiple Choice)

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Question 79

If the break-even point increases,the margin of safety increases.

(True/False)

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Question 80

Showing 61 - 80 of 160

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

Refer to the Figure.Plastic Gym expects tree house demand to increase from 4,000 to 8,000 units.What is the sales revenue at break-even?

What formula is used to calculate contribution margin ratio?

In a multi-product firm,if the sales mix changes,the break-even points for each product will not change.

What is operating leverage the relative mix of?

TriTech Company sells a product for $12.Variable costs are $6 per unit,and total fixed costs are $6,000.How many units must Melody sell to earn an operating profit of $240?

What is the term for the units sold or expected to be sold,or the sales revenue earned or expected to be earned,above the break-even volume?

What are the assumptions underlying cost-volume-profit analysis?

Operating leverage is the use of fixed cost to extract higher percentage changes in profits as sales activity changes.

Match each item with the correct statement below. -Break-even point

If variable costs per unit increase,the break-even point will increase.

The contribution margin ratio is equal to the 1 minus the variable cost ratio.

At the break-even point,revenue is equal to the contribution margin.

Refer to the Figure.What is the total contribution margin of six practice models,three deluxe models,and one professional model?

Match each item with the correct statement below. -Sales revenue minus total variable cost or price minus unit variable cost

If the break-even point increases,the margin of safety increases.

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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