Question : 171. Knotley Co. sells two products, X and Y. Last year : 1233802

 

171. Knotley Co. sells two products, X and Y. Last year Knotley sold 14,000 units of X’s and 21,000 units of Y’s. Related data are: 

 

Unit Selling Price

Unit Variable

Unit contribution

Product

Price

Cost

Margin

X

$110

$70

$40

Y

   70

  50

$20

 

 

 

 

What was Knotley Co.’s overall unit variable cost? A. $58B. $48C. $70D. $50

172. Knotley Co. sells two products, X and Y. Last year Knotley sold 14,000 units of X’s and 21,000 units of Y’s. Related data are: 

 

Unit Selling Price

Unit Variable

Unit contribution

Product

Price

Cost

Margin

X

$110

$70

$40

Y

   70

  50

$20

 

 

 

 

What was Knotley Co.’s unit contribution margin? A. $30B. $20C. $40D. $28

173. Knotley Co. sells two products, X and Y. Last year Knotley sold 14,000 units of X’s and 21,000 units of Y’s. Related data are: 

 

Unit Selling Price

Unit Variable

Unit contribution

Product

Price

Cost

Margin

X

$110

$70

$40

Y

   70

  50

$20

 

 

 

 

Assuming that last year’s fixed costs totaled $588,000. What was Knotley Co.’s break-even point in units? A. 35,000 unitsB. 30,100 unitsC. 21,000 unitsD. 14,000 units

174. If sales are $400,000, variable costs are 75% of sales, and operating income is $50,000, what is the operating leverage? A. 2.500B. 7.500C. 2.000D. 0

175. Which of the following is not an assumption underlying cost-volume-profit analysis? A. The break-even point will be passed during the period.B. Total sales and total costs can be represented by straight lines.C. Costs can be accurately divided into fixed and variable components.D. The sales mix is constant.

176. The manufacturing cost of Lancer Industries for three months of the year are provided below: 

 

 

Total Cost

Production

 

April

$ 63,100

1,200 Units

 

May

80,920

1,800        

 

June

100,300

2,400        

 

 

 

 

Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed costs. 

177. The manufacturing cost of Spencer Industries for the first three months of the year are provided below: 

 

 

Total Cost

Production

 

January

$  93,300

2,300 Units

 

February

115,500

3,100        

 

March

81,900

1,900        

 

 

 

 

Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed cost. 

178. Halley Company sells 30,000 units at $15 per unit. Variable costs are $9 per unit, and fixed costs are $42,000. Determine the (a) contribution margin ratio, (b) unit contribution margin, and (c) income from operations. 

179. Halley Company sells 25,000 units at $15 per unit. Variable costs are $9 per unit, and fixed costs are $32,000. Determine the (a) contribution margin ratio, (b) unit contribution margin, and (c) income from operations. 

180. Madstorm Enterprises sells a product for $50 per unit. The variable cost is $30 per unit, while fixed costs are $80,000. Determine the (a) break-even point in sales units, and (b) break-even point if the selling price was increased to $55 per unit.