Question :
112.The Goldfarb Company manufactures and sells toasters. Each toaster sells : 1258557
112.The Goldfarb Company manufactures and sells toasters. Each toaster sells for $23.75 and the variable cost per unit is $16.25. Goldfarb’s total fixed costs are $25,000, and budgeted sales are 8,000 units. What is the contribution margin per unit?
A. $7.50.
B. $16.25.
C. $23.75.
D. $60,000.
E. $1.25.
113.Leeks Company’s product has a contribution margin per unit of $11.25 and a contribution margin ratio of 22.5%. What is the selling price of the product?
A. $5.
B. $20.
C. $30.
D. $40.
E. $50.
114.Alvarez Company’s break-even point in units is 1,000. The sales price per unit is $10 and variable cost per unit is $7. If the company sells 2,500 units, what will net income be?
A. $4,500
B. $7,500
C. $17,000
D. $35,000
E. $3,000
115.Mullis Corp. manufactures DVDs that sell for $5.00. Fixed costs are $28,000 and variable costs are $3.60 per unit. Mullis can buy a newer production machine that will increase fixed costs by $8,000 per year, but will decrease variable costs by $0.40 per unit. What effect would the purchase of the new machine have on Mullis’ break-even point in units?
A. 4,444 unit increase.
B. 9,850 unit decrease.
C. 5,714 unit increase.
D. 4,444 unit decrease.
E. No effect.
116.At Midland Company’s break-even point of 9,000 units, fixed costs are $180,000 and variable costs are $540,000 in total. The unit sales price is:
A. $20.
B. $40.
C. $60.
D. $80.
E. $100.
117.Assume that sales are predicted to be $3,750, the expected contribution margin is $1,500, and a net loss of $250 is anticipated. The break-even point in sales dollars is:
A. $1,750.
B. $2,500.
C. $4,000.
D. $4,250.
E. $4,375.
118.During a recent fiscal year, Creek Company reported pretax income of $125,000, a contribution margin ratio of 25% and total contribution margin of $400,000. Total variable costs must have been:
A. $1,100,000.
B. $1,200,000.
C. $500,000.
D. $1,600,000.
E. $2,100,000.
119.In Keegan Corporation’s most recent fiscal year, the company reported pretax earnings of $215,000. Fixed costs totaled $325,800, the unit selling price of the firm’s only product was $60, and the variable costs per unit were 40% of the selling price. Based on this information, the firm’s break-even point in units was:
A. 13,575 units.
B. 15,023 units.
C. 13,750 units.
D. 9,050 units.
E. 8,750 units.
120.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.
121.When graphing cost-volume-profit data on a CVP chart:
A. Units are plotted on the horizontal axis; costs on the vertical axis.
B. Units are plotted on the vertical axis; costs on the horizontal axis.
C. Both units and costs are plotted on the horizontal axis.
D. Both units and cost are plotted on the vertical axis.
E. Data points always represent expected future points.
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LeoSteve
