Question

________ is the excess of sales over the cost of goods sold.

A) Gross margin

B) Contribution-margin ratio

C) Variable-cost ratio

D) Contribution margin

Answer:

Which statement is FALSE?

A) Each different sales-mix of products has a different break-even point.

B) Changes in the sales-mix of products sold affects a company's net operating profit.

C) Changes in the sales-mix of products sold affects a company's contribution margin.

D) If the sales-mix of products sold changes, the break-even point does not change.

Answer:

With mixed costs, the ________ element is unchanged over the relevant range and the ________ element varies proportionately with cost-driver activity.

A) variable cost; fixed cost

B) fixed cost; variable cost

C) fixed cost; step cost

D) step cost; variable cost

Answer:

The sales price is $30 per unit, the contribution margin is $8 per unit and total fixed costs are $32,000. What is the break-even point in units?

A) 857

B) 1,200

C) 2,000

D) 4,000

Answer:

If the selling price per unit increases, what is the effect on the break-even point? (Assume no other changes.)

A) The break-even point increases.

B) The break-even point decreases.

C) The break-even point remains the same.

D) The break-even point is zero.

Answer #1

1 | |||||||||||||||

Gross margin is the excess of sales over the cost of goods sold. | |||||||||||||||

2 | |||||||||||||||

is the excess of sales over the cost of goods sold is FALSE | |||||||||||||||

3 | |||||||||||||||

With mixed costs, the fixed cost element is unchanged over the relevant range and the variable cost element varies proportionately with cost-driver activity. | |||||||||||||||

4 | |||||||||||||||

Break-even point in units = 32000/8= 4000 | |||||||||||||||

5 | |||||||||||||||

If the selling price per unit increases,The break-even point decreases. | |||||||||||||||

In CVP analysis, the unit contribution margin is:
Sales price per unit less cost of goods sold per unit
Sales price per unit less FC per unit
Sales price per unit less total VC per unit
Same as the CM
Maroon Company’s CM ratio of 24%. Total FC are
$84,000. What is Maroon’s B/E point in sales dollars?
$20,160
$110,536
$240,000
$350,000
If a firm’s forecasted sales are $250,000 and its B/E sales are
$190,000, the margin of safety in dollars is:...

1. A company's contribution margin is $90 per unit at a sales
level of 5,400 units. The company's operating income is $37,000.
The company's operating leverage is closest to _____. (Round-off
the answer to one decimal place.)
a.14.9
b.13.1
c.12.4
d.14.0
2. The break-even point is:
a.the same for every company in the same industry.
b.the point where a company's profits are maximized.
c.the point where total revenue equals total cost.
d.the point where sales revenues equal variable costs.
3....

Which of the following statements is false?
Multiple Choice
Margin of safety is the excess of budgeted or actual dollar
sales over the break-even dollar sales.
Operating leverage is a measure of how sensitive fixed costs are
to a given percentage change in dollar sales.
The break-even point is the level of sales at which the total
contribution margin equals the total fixed costs.
Sales mix refers to the relative proportions in which a
company's products are sold.

Sales Mix and Break-Even Analysis
Michael Company has fixed costs of $1,021,330. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below.
Product
Selling
Price
Variable
Cost per Unit
Contribution Margin per Unit
Q
$440
$240
$200
Z
560
500
60
The sales mix for products Q and Z is 35% and 65%,
respectively.
Determine the break-even point in units of Q and
Z.
If required, round your answers...

Sales Mix and
Break-Even Analysis
Michael Company has
fixed costs of $500,240. The unit selling price, variable cost per
unit, and contribution margin per unit for the company's two
products follow:
Product
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
QQ
$570
$330
$240
ZZ
310
240
70
The sales mix for
Products QQ and ZZ is 20% and 80%, respectively. Determine the
break-even point in units of QQ and ZZ. If required, round your
answers to the...

Steven Company has fixed costs of $289,518. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below.
Product
Selling Price per Unit
Variable Cost per Unit
Contribution Margin per Unit
X
$848
$318
$530
Y
645
345
300
The sales mix for Products X and Y is 60% and 40%, respectively.
Determine the break-even point in units of X and Y. Round
answers to the nearest whole number.
units...

XYZ company's sales $800000, unit variable cost $8, fixed
expense $100000, and number of units sold equals 80000.
Requirements (1-10):
Net operating income.
2. Contribution margin percentage.
3. Unit fixed cost.
4. Break-even point in unit sold.
5. Break-even point in total sales dollar.
6. Unit sales to attain the target profit 76000.
7. Margin of safety (Units).
8. Margin of safety (%).
9. Degree of operating leverage.
10.In original information, if the number of quantity sold
increase by 10%,...

Sales
$60,000
Less: Variable Expenses
45,000
Contribution Margin
15,000
Less: Fixed Expenses
18,000
Net Income
-$3,000
a. What are the total sales in dollars at the break-even
point?
b. What are the total variable expenses at the break-even
point?
c. What is the company's contribution margin ratio?
d. If unit sales were increased by 10% and fixed expenses were
reduced by $2,000, what would be the company's expected net income?
(Prepare a new income statement.)

Sales mix and break-even analysis
Conley Company has fixed costs of $15,525,000. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products follow:
Product
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
Yankee
$175
$100
$75
Zoro
255
180
75
The sales mix for products Yankee and Zoro is 20% and 80%,
respectively.
Determine the break-even point in units of Yankee and Zoro of
the overall (total) product, E. If...

The following information is available for a company’s
maintenance cost over the last seven months.
Month
Maintenance Hours
Maintenance Cost
June
9
$
4,590
July
18
7,110
August
12
5,430
September
15
6,270
October
21
7,950
November
24
8,790
December
6
3,750
Using the high-low method, estimate both the fixed and variable
components of its maintenance cost.
High-Low method - Calculation of variable cost per maintenance
hour
0
Total cost at the high
point
Variable costs at the high
point:...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 17 minutes ago

asked 33 minutes ago

asked 50 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago