Question : 151. Assume that Krause Co. sold 8,000 units of Product A : 1246787

 

 

151. Assume that Krause 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 $20 and $45 respectively. Krause has fixed costs of $350,000. The break-even point in units is: A. 14,000 unitsB. 25,278 unitsC. 8,000 unitsD. 10,769 units

 

152. 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: 

Product

Unit SellingPrice

Unit VariableCost

Unit ContributionMargin

Arks

$120

$80

$40

Bins

    80

  60

  20

 

 

 

 

What was Carter Co.’s sales mix last year? A. 20% Arks, 80% BinsB. 12% Arks, 28% BinsC. 70% Arks, 30% BinsD. 40% Arks, 20% Bins

 

153. 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: 

Product

Unit SellingPrice

Unit VariableCost

Unit ContributionMargin

Arks

$120

$80

$40

Bins

    80

  60

  20

 

 

 

 

What was Carter Co.’s weighted average unit selling price? A. $200B. $100C. $ 80D. $ 88

 

154. 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: 

Product

Unit SellingPrice

Unit VariableCost

Unit ContributionMargin

Arks

$120

$80

$40

Bins

    80

  60

  20

 

 

 

 

What was Carter Co.’s weighted average variable cost? A. $140B. $ 70C. $ 64D. $ 60

 

155. 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: 

Product

Unit SellingPrice

Unit VariableCost

Unit ContributionMargin

Arks

$120

$80

$40

Bins

    80

  60

  20

 

 

 

 

What was Carter Co.’s weighted average unit contribution margin? A. $24B. $60C. $92D. $20

 

156. 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: 

Product

Unit SellingPrice

Unit VariableCost

Unit ContributionMargin

Arks

$120

$80

$40

Bins

    80

  60

  20

 

 

 

 

Assuming that last year’s fixed costs totaled $960,000, what was Carter Co.’s break-even point in units? A. 40,000 unitsB. 12,000 unitsC. 35,000 unitsD. 28,000 units

 

157. If a business had a capacity of $10,000,000 of sales, actual sales of $6,000,000, break-even sales of $4,500,000, fixed costs of $1,800,000, and variable costs of 60% of sales, what is the margin of safety expressed as a percentage of sales? A. 25%B. 18%C. 33.3%D. 15%

 

158. If a business had sales of $4,000,000, fixed costs of $1,300,000, a margin of safety of 25%, and a contribution margin ratio of 40%, what was the break-even point? A. $3,250,000B. $2,800,000C. $5,200,000D. $1,000,000

 

159. If a business had sales of $4,000,000 and a margin of safety of 20%, what was the break-even point? A. $5,000,000B. $3,200,000C. $12,000,000D. $1,000,000

 

160. Forde Co. has an operating leverage of 4. Sales are expected to increase by 8% next year. Operating income is: A. unaffectedB. expected to increase by 2%C. expected to increase by 32%D. expected to increase by 4 times

 

 

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