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Exam 19: Cost Behavior and Cost-Volume-Profit Analysis

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Question 31

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Safari Co. sells two products, Orks and Zins. Last year, Safari sold 21,000 units of Orks and 14,000 units of Zins. Related data are Calculate the following: a. Safari Co.'s sales mix b. Safari Co.'s unit selling price of E? c. Safari Co.'s unit contribution margin of E? d. Safari Co.'s break­even point assuming that last year's fixed costs were $160,000.

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a. Orks: 21,000/21,000 + 14,00...

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Question 32

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The Grant Company has sales of $300,000, and the break-even point in sales dollars if $225,000. Determine the company's margin of safety percentage.

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25% $300,0...

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Question 33

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Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $20 per unit, while fixed costs are $85,000. Determine the a) break-even point in sales units, and b) break-even point in sales units if the selling price increased to $80 per unit. Round your answer to the nearest whole number.

If fixed costs are $600,000 and the unit contribution margin is $40, what is the break-even point if fixed costs are increased by $90,000?

If sales are $425,000, variable costs are 62% of sales, and operating income is $50,000, what is the contribution margin ratio?

a) If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio? b) If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?

If sales total $2,000,000, fixed costs total $800,000, and variable costs are 60% of sales, the contribution margin ratio is 60%.

The relevant activity base for a cost depends upon which base is most closely associated with the cost and the decision-making needs of management.

For purposes of analysis, mixed costs are

The Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is $60 per unit, and fixed costs are $270,000. Determine the a) unit sales price, and b) break-even points in sales units if the company desires a target profit of $36,000.

Variable costs are costs that remain constant in total dollar amount as the level of activity changes.

The systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits is termed

Match the following terms a-e) with their definitions. -Plots only the difference between total sales and total costs

Carrolton, Inc. currently sells widgets for $80 per unit. The variable cost is $30 per unit and total fixed costs equal $240,000 per year. Sales are currently 20,000 units annually. The company is considering a 20% drop in selling price that it believes will raise units sold by 20%. Assuming all costs stay the same, what is the impact on income if this change is made?

If direct materials cost per unit increases, the break-even point will increase.

Thompson Company manufactures and sells cookware. Because of current trends, it expects to increase sales by 15% next year. If this expected level of production and sales occurs and plant expansion is not needed, how should this increase affect next year's total amounts for the following costs?

If fixed costs increased and variable costs per unit decreased, the break-even point would

If fixed costs are $500,000, the unit selling price is $55, and the unit variable costs are $30, what is the break-even sale units) if fixed costs are increased by $80,000?

Match the following terms a-e) with their definitions. -The relative distribution of sales among products sold by a company

If the volume of sales is $7,000,000 and sales at the break-even point amount to $4,800,000, the margin of safety is 45.8%.