Question : 161. If sales $400,000, variable costs 80% of sales, and operating : 1246788

 

 

161. If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the operating leverage? A. 0B. 7.500C. 2.0D. 1.333

 

162. If a business had a margin of safety ratio of 20%, variable costs of 75% of sales, fixed costs of $240,000, a break-even point of $960,000, and operating income of $60,000 for the current year, what are the current year’s sales? A. $1,200,000B. $1,040,000C. $1,260,000D. $1,020,000

 

163. The difference between the current sales revenue and the sales at the break-even point is called the: A. contribution marginB. margin of safetyC. price factorD. operating leverage

 

164. Cost-volume-profit analysis cannot be used if which of the following occurs? A. Costs cannot be properly classified into fixed and variable costsB. The total fixed costs changeC. The per unit variable costs changeD. Per unit sales prices change

 

165. Assume that Corn 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 $30 and $60 respectively. Corn has fixed costs of $378,000. The break-even point in units is: A. 8,000 unitsB. 6,300 unitsC. 12,600 unitsD. 10,500 units

 

166. Safari Co. sells two products, Orks and Zins. Last year Safari sold 21,000 units of Orks and 14,000 units of Zins. Related data are: 

Product

Unit SellingPrice

Unit VariableCost

Unit ContributionMargin

Orks

$120

$80

$40

Zins

    80

  60

  20

 

 

 

 

What was Safari Co.’s sales mix last year? A. 60% Orks, 40% ZinsB. 30% Orks, 70% ZinsC. 70% Orks, 30% ZinsD. 40% Orks, 60% Zins

 

167. Safari Co. sells two products, Orks and Zins. Last year Safari sold 21,000 units of Orks and 14,000 units of Zins. Related data are: 

Product

Unit SellingPrice

Unit VariableCost

Unit ContributionMargin

Orks

$120

$80

$40

Zins

    80

  60

  20

 

 

 

 

What was Safari’s Co.’s weighted average unit selling price? A. $200B. $104C. $120D. $80

 

168. Safari Co. sells two products, Orks and Zins. Last year Safari sold 21,000 units of Orks and 14,000 units of Zins. Related data are: 

Product

Unit SellingPrice

Unit VariableCost

Unit ContributionMargin

Orks

$120

$80

$40

Zins

    80

  60

  20

 

 

 

 

What was Safari’s Co.’s weighted average unit contribution margin? A. $20B. $40C. $32D. $24

 

169. Safari Co. sells two products, Orks and Zins. Last year Safari sold 21,000 units of Orks and 14,000 units of Zins. Related data are: 

Product

Unit SellingPrice

Unit VariableCost

Unit ContributionMargin

Orks

$120

$80

$40

Zins

    80

  60

  20

 

 

 

 

Assuming that last years fixed costs totaled $160,000, what was Safari’s Co.’s breakeven point in units? A. 5,000 unitsB. 4,000 unitsC. 8,000 unitsD. 2,667 units

 

170. If a business had a capacity of $8,000,000 of sales, actual sales of $5,000,000, break-even sales of $3,500,000, fixed costs of $1,400,000, and variable costs of 60% of sales, what is the margin of safety expressed as a percentage of sales? A. 25%B. 18%C. 28%D. 30%