151. 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
152. 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
153. 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
154. 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
155. If sales are $500,000, variable costs are 75% of sales, and operating income is $40,000, what is the operating leverage? A. 0B. 1.25C. 1.3D. 3.1
156. The Rocky Company reports the following data.
Sales
$800,000
Variable costs
$300,000
Fixed costs
$120,000
Rocky Company’s operating leverage is: A. 6.7B. 2.7C. 1.0D. 1.3
157. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s. Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110.00
$70.00
$40.00
Y
70.00
50.00
$20.00
What was Rusty Co.’s sales mix last year? A. 58% X’s, 42% Y’sB. 60% X’s, 40% Y’sC. 30% X’s, 70% Y’sD. 12.5% X’s, 87.5% Y’s
158. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s. Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110.00
$70.00
$40.00
Y
70.00
50.00
$20.00
What was Rusty Co.’s weighted average unit selling price? A. $180.00B. $75.00C. $100.00D. $110.00
159. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s. Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110.00
$70.00
$40.00
Y
70.00
50.00
$20.00
What was Rusty Co.’s weighted average unit variable cost? A. $52.50B. $70.00C. $120.00D. $50.00
160. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s. Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110.00
$70.00
$40.00
Y
70.00
50.00
$20.00
What was Rusty Co.’s weighted average unit contribution margin? A. $60.00B. $20.00C. $40.00D. $22.50
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