Exam 11: Cost Behavior and Cost-Volume-Profit Analysis

Given the following cost and activity observations for Pike Company's utilities,use the high-low method to calculate Pike Company's variable utilities costs per machine hour.

For the past year,LaPrade Company had fixed costs of $70,000,unit variable costs of $32,and a unit selling price of $40.For the coming year,no changes are expected in revenues and costs except that property taxes are expected to increase by $10,000.Determine the break-even sales (in units)for (a)the past year and (b)the coming year.

If fixed costs are $300,000 and variable costs are 70% of break-even sales,profit is zero when sales revenue is $1,000,000.

The graph of a variable cost when plotted against its related activity base appears as a

If a business had sales of $4,000,000 and a margin of safety of 25%,what was the break-even point?

Which of the following conditions would cause the break-even point to increase?

Assume that Crowson Co.sold 8,000 units of Product A and 2,000 units of Product B during the past year.The unit contribution margins for Products A and B are $20 and $45,respectively.Crowson has fixed costs of $350,000.The break-even point in units is

Given the following cost and activity observations for Pike Company's utilities,use the high-low method to calculate Pike's variable utilities costs per machine hour.

Kennedy Co.sells two products,Arks and Bins.Last year,Kennedy sold 32,000 units of Arks and 18,000 units of Bins.Related data are: -What was Kennedy Co.'s sales mix last year?

Which of the following describes the behavior of the variable cost per unit?

Which of the following is an example of a cost that varies in total as the number of units produced changes?

The following is a list of various costs of producing sweatshirts.Classify each cost as either a variable,fixed,or mixed cost for units produced and sold.

Cost-volume-profit analysis CANNOT be used if which of the following occurs?

Which of the following graphs illustrates the nature of a mixed cost?

Which of the following graphs illustrates the behavior of a total fixed cost?

Kennedy Co.sells two products,Arks and Bins.Last year,Kennedy sold 32,000 units of Arks and 18,000 units of Bins.Related data are: -What was Kennedy Co.'s overall enterprise product's unit selling price?

The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents

Given the following cost and activity observations for Merritt Company's utilities,use the high-low method to calculate Merritt's fixed costs per month.

The systematic examination of the relationships among selling prices,volume of sales and production,costs,expenses,and profits is termed

If fixed costs are $350,000,the unit selling price is $75,and the unit variable costs are $30,what is the break-even sales (in units)?