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Exam 19: Cost-Volume-Profit Analysis

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Question 71

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Reynold's Grocery has fixed costs of $350,000,the unit selling price is $29,and the unit variable costs are $20.What is the break-even sales (units) if the variable costs are decreased by $4?

A) 26,923 units
B) 12,069 units
C) 21,875 units
D) 38,889 units

E) C) and D)
F) None of the above

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Question 72

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Which of the following activity bases would be the most appropriate for gasoline costs of a delivery service?

A) number of truck drivers
B) total of miles driven
C) how many trucks are in service
D) number of packages picked up

E) A) and D)
F) B) and D)

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Question 73

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Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

Assume that Corn Co.sold 8,000 units of Product A and 2,000 units of Product B during the past year.The unit contribution margins for Products A and B are $30 and $60,respectively.Corn has fixed costs of $378,000.The break-even point in units is

Blane Company has the following data: ​ What will operating income be if units sold double to 100,000 units?

If fixed costs are $400,000 and the unit contribution margin is $20,what amount of units must be sold in order to have a zero profit?

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.

Piper Technology's fixed costs are $1,500,000,the unit selling price is $250,and the unit variable costs are $130,what is the amount of sales required to realize an operating income of $200,000?

Which of the graphs in Figure 21-1 illustrates the behavior of a total fixed cost?

Which of the following is not an example of a cost that varies in total as the number of units produced changes?

What would be the difference in Timmer's net income for the year if it used variable costing instead of absorption costing?

Lee Industry sales are $525,000,variable costs are 53% of sales,and operating income is $19,000.What is the contribution margin ratio?

The following is a list of various costs of producing T-shirts.Classify each cost as either a variable,fixed,or mixed cost for units produced and sold.

Beemer's sales are $400,000,variable costs are 75% of sales,and operating income is $50,000.The operating leverage is

If a business sells four products,it is not possible to estimate the break-even point.

Cost behavior refers to the methods used to estimate costs for use in managerial decision making.

The relevant range is useful for analyzing cost behavior for management decision-making purposes.

For purposes of analysis,mixed costs are

Which of the following conditions would cause the break-even point to increase?

What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?