Question : 141. The point where the profit line intersects the horizontal axis : 1233799

141. The point where the profit line intersects the horizontal axis on the profit-volume chart represents: 
A. the maximum possible operating loss
B. the maximum possible operating income
C. the total fixed costs
D. the break-even point

142. The point where the profit line intersects the left vertical axis on the profit-volume chart represents: 
A. the maximum possible operating loss
B. the maximum possible operating income
C. the total fixed costs
D. the break-even point

143. With the aid of computer software, managers can vary assumptions regarding selling prices, costs, and volume and can immediately see the effects of each change on the break-even point and profit. Such an analysis is called: 
A. “What if” or sensitivity analysis
B. vary the data analysis
C. computer aided analysis
D. data gathering

144. In a cost-volume-Profit chart, the 
A. total cost line begins at zero.
B. slope of the total cost line is dependent on the fixed cost per unit.
C. total cost line begins at the total fixed cost value on the vertical axis.
D. total cost line normally begins at zero.

145. The relative distribution of sales among the various products sold by a business is termed the: 
A. business’s basket of goods
B. contribution margin mix
C. sales mix
D. product portfolio

146. When a business sells more than one product at varying selling prices, the business’s break-even point can be determined as long as the number of products does not exceed: 
A. two
B. three
C. fifteen
D. there is no limit

147. Assume that Crowley 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. Crowley has fixed costs of $350,000. The break-even point in units is: 
A. 14,000 units
B. 25,278 units
C. 8,000 units
D. 10,769 units

148. Phipps Co. sells two products, Arks and Bins. Last year Phipps sold 12,000 units of Arks and 28,000 units of Bins. Related data are:
 

Product

Unit Selling
Price

Unit Variable
Cost

Unit Contribution
Margin

Arks

$120

$80

$40

Bins

    80

  60

  20

What was Phipps Co.’s sales mix last year? 
A. 30% Arks, 70% Bins
B. 12% Arks, 28% Bins
C. 70% Arks, 30% Bins
D. 40% Arks, 20% Bins

149. Phipps Co. sells two products, Arks and Bins. Last year Phipps sold 12,000 units of Arks and 28,000 units of Bins. Related data are:
 

Product

Unit Selling
Price

Unit Variable
Cost

Unit Contribution
Margin

Arks

$120

$80

$40

Bins

    80

  60

  20

What was Phipps Co.’s total unit selling price? 
A. $200
B. $100
C. $ 80
D. $ 92

150. Phipps Co. sells two products, Arks and Bins. Last year Phipps sold 12,000 units of Arks and 28,000 units of Bins. Related data are:
 

Product

Unit Selling
Price

Unit Variable
Cost

Unit Contribution
Margin

Arks

$120

$80

$40

Bins

    80

  60

  20

What was Phipps Co.’s overall unit variable cost? 
A. $140
B. $ 70
C. $ 66
D. $ 60