FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 20: Cost-Volume-Profit Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

Multiple Choice

Review LaterAdd Note

Review Later

Carter Co. sells two products: Arks and Bins. Last year, Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are as follows: ​ -Carter Co.'s unit contribution margin of E was

A) $24
B) $60
C) $92
D) $20

E) C) and D)
F) A) and B)

Correct Answer

verified

Show Answer

Question 82

Short Answer

Review LaterAdd Note

Review Later

Match each of the following descriptions with the appropriate term (a-e). -A specific activity range over which the cost changes are of interest A)Relevant range B)Break-even point C)Contribution margin D)Fixed costs E)Variable costs

Correct Answer

verified

Show Answer

Question 83

True/False

Review LaterAdd Note

Total variable costs change as the level of activity changes.

Match each of the following costs of producing T-shirts with the appropriate classification (a-c). -Warehouse rent of $8,000 per month plus $0.50 per square foot of storage used A)Variable cost B)Fixed cost C)Mixed cost

Harley Company has sales of $500,000, variable costs are 75% of sales, and operating income is $40,000. Harley's operating leverage is

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

Douglas Company has a contribution margin ratio of 30%. If Douglas has $336,420 in fixed costs, what amount of sales will need to be generated in order for the company to break even?

Match each of the following costs with the graph (a-e) that best portrays its cost behavior as the number of units produced and sold increases. -Total direct labor cost A)Graph 1 B)Graph 2 C)Graph 3 D)Graph 4 E)Graph 5

Spice Inc.'s unit selling price is $60, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 8,000 units?

For the current year ending January 31, Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50. For the coming year, a new wage contract will increase the unit variable cost to $55.50. The selling price of $70.00 per unit is expected to remain the same. a.Compute the break-even sales (units) for the current year. Round your answer to the nearest whole number. b.Compute the anticipated break-even sales (units) for the coming year, assuming the new wage contract is signed.

Even if a business sells six products, it is possible to estimate the break-even point.

Cost-volume-profit analysis can be presented in both equation form and graphic form.

Manley Co. manufactures office furniture. During the most productive month of the year, 4,500 desks were manufactured at a total cost of $86,625. In its slowest month, the company made 1,800 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs

As production increases, the fixed cost per unit

If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would

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

If employees accept a wage contract that decreases the unit contribution margin, the break-even point will decrease.

Bryce Co. sales are $914,000, variable costs are $498,130, and operating income is $196,000. The contribution margin ratio is

Which of the following types of cost is shown in the cost data below?

The data required for determining the break-even point for a business are the total estimated fixed costs for a period stated as a percentage of sales.