Question : 51. Village ManufacturingVillage Manufacturing produces two types of products – Card : 1291716

 

51. Village ManufacturingVillage Manufacturing produces two types of products – Card Games and Puzzles. The following information is available related to each product: 

 

Card Games

 

Puzzles

Sales price per unit

$6.00

 

$15.00

Variable costs per unit

2.00

 

3.50

 

 

 

 

60% of the products sold are Card Games and 40% are Puzzles. Refer to the Village Manufacturing information above. If total fixed costs are $24,500, how many Card Games need to be sold in order for the company to break even? A. 2,100 unitsB. 3,675 unitsC. 4,200 unitsD. 3,500 units

 

52. Which of the following statements is correct as it relates to a company that sells multiple products? A. CVP analysis cannot be used.B. Contribution margin is based on sales mix.C. CVP analysis is much easier to use.D. The break-even point remains the same even if sales mix changes.

 

53. When calculating the break-even point in a multi-product environment, which of the following statements is false? A. The contribution margin per unit for each product needs to be determined.B. Total fixed costs need to be determined.C. Each product is assumed to count for an equal percentage of total sales.D. The weighted-average contribution margin per unit needs to be determined.

 

54. When calculating the break-even point in a multi-product environment, which of the following pieces of information wouldnot be relevant? A. Contribution margin per unit for each type of productB. Each product’s percentage of total salesC. Total fixed costsD. Fixed costs per unit

 

55. In a multi-product environment: A. cost-volume-profit analysis is not advisable to use.B. only the product with the highest contribution margin should be sold.C. the product with the highest sales prices per unit should account for the majority of the sales.D. a weighted-average contribution margin per unit should be computed for all products produced and sold.

 

56. Bergman Inc.Bergman Inc. has the following product information available: 

Sales price

$20 per unit

Variable costs

$8 per unit

Fixed costs

$18,000

Units produced and sold

12,000

 

 

Refer to the Bergman Inc. information above. What is the break-even point in units? A. 1,500 unitsB. 643 unitsC. 600 unitsD. 900 units

 

57. Bergman Inc.Bergman Inc. has the following product information available: 

Sales price

$20 per unit

Variable costs

$8 per unit

Fixed costs

$18,000

Units produced and sold

12,000

 

 

Refer to the Bergman Inc. information above. How many units need to be sold in order to earn a target profit of $180,000? A. 24,750 unitsB. 16,500 unitsC. 20,842 unitsD. 22,500 units

 

58. Poole Products Inc.Poole Products Inc. has the following product information available: 

Sales price

$25 per unit

Variable costs

$10 per unit

Fixed costs

$36,000

 

 

Refer to the Poole Products Inc. information above. What is the break-even point in units? A. 1,029 unitsB. 1,440 unitsC. 2,400 unitsD. 5,400 units

 

59. Poole Products Inc.Poole Products Inc. has the following product information available: 

Sales price

$25 per unit

Variable costs

$10 per unit

Fixed costs

$36,000

 

 

Refer to the Poole Products Inc. information above. What is the break-even point in sales dollars? A. $21,600B. $36,000C. $60,000D. $90,000

 

60. Poole Products Inc.Poole Products Inc. has the following product information available: 

Sales price

$25 per unit

Variable costs

$10 per unit

Fixed costs

$36,000

 

 

Refer to the Poole Products Inc. information above. How many units need to be sold in order to earn a target profit of $249,000? A. 8,143 unitsB. 14,200 unitsC. 16,600 unitsD. 19,000 units