Question :
171. If sales $500,000, variable costs 75% of sales, and operating : 1246789
171. If sales are $500,000, variable costs are 75% of sales, and operating income is $50,000, what is the operating leverage? A. 0B. 1.25C. 2.2D. 2.5
172. The Rocky Company reports the following data.
Sales
$700,000
Variable costs
$300,000
Fixed costs
$120,000
Rocky Company’s operating leverage is: A. 3.33B. 2.5C. 1.0D. 1.4
173. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s. Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110
$70
$40
Y
70
50
$20
What was Rusty Co.’s sales mix last year? A. 58% X’s, 42% Y’sB. 60% X’s, 40% Y’sC. 30% X’s, 70% Y’sD. 12.5% X’s, 87.5% Y’s
174. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s. Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110
$70
$40
Y
70
50
$20
What was Rusty Co.’s weighted average unit selling price? A. $180B. $75C. $100D. $110
175. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s. Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110
$70
$40
Y
70
50
$20
What was Rusty Co.’s weighted average unit variable cost? A. $52.50B. $70C. $120D. $50
176. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s. Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110
$70
$40
Y
70
50
$20
What was Rusty Co.’s weighted average unit contribution margin? A. $60B. $20C. $40D. $22.50
177. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s. Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110
$70
$40
Y
70
50
$20
Assuming that last year’s fixed costs totaled $675,000. What was Rusty Co.’s break-even point in units? A. 16,875 unitsB. 30,100 unitsC. 30,000 unitsD. 11,250 units
178. If sales are $400,000, variable costs are 75% of sales, and operating income is $50,000, what is the operating leverage? A. 2.5B. 7.5C. 2.0D. 0
179. Which of the following is not an assumption underlying cost-volume-profit analysis? A. The break-even point will be passed during the period.B. Total sales and total costs can be represented by straight lines.C. Costs can be accurately divided into fixed and variable components.D. The sales mix is constant.
180. When units manufactured exceed units sold: A. variable costing income equals absorption costing incomeB. variable costing income is less than absorption costing incomeC. variable costing income is greater than absorption costing incomeD. variable costing income is greater by the number of units produced multiplied by the variable cost ratio.
