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.
