Question 1

Match each of the following descriptions with the appropriate term (a-e).
-The relative distribution of sales among products sold by a company
A)Profit-volume chart
B)Cost-volume-profit chart
C)Sales mix
D)Operating leverage
E)Margin of safety

Accepted Answer

The answer of Match each of the following descriptions with...

Question 2

Racer Industries has fixed costs of $900,000. The selling price per unit is $250, and the variable cost per unit is $130.
a. How many units must Racer sell in order to break even?
b. How many units must Racer sell in order to earn a profit of $480,000?
c. A new employee suggests that Racer Industries sponsor a 10K marathon as a form of advertising. The cost to
sponsor the event is $7,200. How many more units must be sold to cover this cost?

Accepted Answer

a. $900,000 ÷ ($250 - $130) = ...

Question 3

If employees accept a wage contract that increases the unit contribution margin, the break-even point will decrease.

Accepted Answer

A) True 
 B)False

Question 4

If fixed costs are $500,000 and variable costs are 60% of break-even sales, profit is zero when sales revenue is $930,000.

Accepted Answer

A) True 
 B)False

Question 5

Match each of the following descriptions with the appropriate term (a-e).
-Vary(ies) in proportion to changes in activity levels
A)Relevant range
B)Break-even point
C)Contribution margin
D)Fixed costs
E)Variable costs

Accepted Answer

The answer of Match each of the following descriptions with...

Question 6

Match each of the following descriptions with the appropriate term (a-e).
-Plots only the difference between total sales and total costs
A)Profit-volume chart
B)Cost-volume-profit chart
C)Sales mix
D)Operating leverage
E)Margin of safety

Accepted Answer

The answer of Match each of the following descriptions with...

Question 7

Match each of the following costs with the graph (a-e) that best portrays its cost behavior as the number of units produced and sold increases.     
-Sales commissions of $6,000 plus $0.05 for each item sold
A)Graph 1
B)Graph 2
C)Graph 3
D)Graph 4
E)Graph 5

Accepted Answer

The answer of Match each of the following costs with...

Exam 20: Cost-Volume-Profit Analysis

Match each of the following descriptions with the appropriate term (a-e). -Plots only the difference between total sales and total costs A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

Correct Answer
verified

Match each of the following descriptions with the appropriate term (a-e). -Vary(ies) in proportion to changes in activity levels A)Relevant range B)Break-even point C)Contribution margin D)Fixed costs E)Variable costs

Correct Answer
verified

If fixed costs are $500,000 and variable costs are 60% of break-even sales, profit is zero when sales revenue is $930,000.

Correct Answer
verified

Match each of the following descriptions with the appropriate term (a-e). -The relative distribution of sales among products sold by a company A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

Correct Answer
verified

Match each of the following costs with the graph (a-e) that best portrays its cost behavior as the number of units produced and sold increases. -Sales commissions of $6,000 plus $0.05 for each item sold A)Graph 1 B)Graph 2 C)Graph 3 D)Graph 4 E)Graph 5

Correct Answer
verified

If employees accept a wage contract that increases the unit contribution margin, the break-even point will decrease.

Correct Answer
verified

Correct Answer
verified
a. $900,000 ÷ ($250 - $130) = ...
View Answer

Exam 20: Cost-Volume-Profit Analysis

Match each of the following descriptions with the appropriate term (a-e). -Plots only the difference between total sales and total costs A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

Correct AnswerverifiedShow Answer

Match each of the following descriptions with the appropriate term (a-e). -Vary(ies) in proportion to changes in activity levels A)Relevant range B)Break-even point C)Contribution margin D)Fixed costs E)Variable costs

Correct AnswerverifiedShow Answer

If fixed costs are $500,000 and variable costs are 60% of break-even sales, profit is zero when sales revenue is $930,000.

Correct AnswerverifiedShow Answer

Match each of the following descriptions with the appropriate term (a-e). -The relative distribution of sales among products sold by a company A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

Correct AnswerverifiedShow Answer

Match each of the following costs with the graph (a-e) that best portrays its cost behavior as the number of units produced and sold increases. -Sales commissions of $6,000 plus $0.05 for each item sold A)Graph 1 B)Graph 2 C)Graph 3 D)Graph 4 E)Graph 5

Correct AnswerverifiedShow Answer

If employees accept a wage contract that increases the unit contribution margin, the break-even point will decrease.

Correct AnswerverifiedShow Answer

Correct Answerverifieda. $900,000 ÷ ($250 - $130) = ...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. $900,000 ÷ ($250 - $130) = ...
View Answer