Question : 111. A cost-volume-profit chart also known as a(n)A.  Operating profit : 1256577

 

 

111. A cost-volume-profit chart is also known as a(n)A.  Operating profit chart.B.  Operating leverage chart.C.  Break-even chart.D.  Margin of safety chart.E.  Sales chart.

 

Reference: 18_04

A firm sells two products, A and B. For every unit of A the firm sells, two units of B are sold. The firm’s total fixed costs are $1,612,000. Selling prices and cost information for both products follow: 

 

 

Unit

 

Variables

 

 

Sales

 

Costs

Product

 

Price

 

per Unit

A

 

$20

 

$8

B

 

24

 

4

 

 

112. The contribution margin per composite unit is:A.  $12B.  $20C.  $32D.  $44E.  $52

 

 

113. The weighted-average contribution margin is:

A.  $14.67

B.  $17.33

C.  $16.00

D.  $18.00

E.  $15.00

 

 

 

114. What is the firm’s break-even point in units of A and B?A.  31,000 of A and 31,000 of B.B.  31,000 of A and 62,000 of B.C.  10,333 of A and 20,667 of B.D.  36,167 of A and 72,333 of B.E.  62,000 of A and 31,000 of B.

 

 

 

 

 

 

 

115. The ratio of the sales volume for the various products sold by a company is called the:A.  Current product mix.B.  Relevant mix.C.  Sales mix.D.  Inventory cost ratio.E.  Production ratio.

 

 

 

 

 

116. Baker Company’s sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $20, $30, and $40, respectively. Variable costs per unit are $12, $18, and $24, respectively. Fixed costs are $320,000. What is the break-even point in composite units?A.  1,111B.  1,600C.  2,666D.  4,000E.  5,000

 

 

 

 

 

 

 

 

 

 

117. Baker Company’s sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $20, $30, and $40, respectively. Variable costs per unit are $12, $18, and $24, respectively. Fixed costs are $320,000. What is the break-even point in units of A, B, and C?A.  A 15,000; B 10,000; C 5,000.B.  A 12,000; B 8,000; C 4,000.C.  A 18,000; B 12,000; C 6,000.D.  A 5,000; B 10,000; C 15,000.E.  A 4,000; B 8,000; C 12,000. 

 

118. Camden Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are: 

 

M

 

N

 

O

Unit sales price

$7

 

$4

 

$6

Unit variable costs

3

 

2

 

3

Total fixed costs are $340,000. The break-even point in sales dollars for the current sales mix is:A.  $20,000B.  $289,000C.  $400,000D.  $629,000E.  $740,000

 

Reference: 18_05

Thomas Company has total fixed costs of $360,000 and variable costs of $14 per unit. If the unit sales price is reduced from $24 to $20 and advertising is increased by $10,000, sales will increase from 40,000 to 65,000 units.

 

 

119. What are the contribution margin and net income under the current conditions?

A.  $650,000 and $280,000 respectively.

B.  $400,000 and $40,000 respectively.

C.  $280,000 and $40,000 respectively.

D.  $390,000 and $20,000 respectively.

E.  $400,000 and $20,000 respectively.

 

 

 

 

 

 

120. What are the contribution margin and net income under the revised conditions?

A.  $650,000 and $280,000 respectively.

B.  $400,000 and $40,000 respectively.

C.  $280,000 and $40,000 respectively.

D.  $390,000 and $20,000 respectively.

E.  $400,000 and $20,000 respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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