FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 18: Cost Behavior and Cost-Volume-Profit Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

A manufacturer reports the following costs to produce 10,000 units in its first year of operations: Direct materials,$10 per unit,Direct labor,$6 per unit,Variable overhead,$70,000,and Fixed overhead,$120,000. -Of the 10,000 units produced,9,200 were sold,and 800 remain in inventory at year-end.Under variable costing,the value of the inventory is:

A) $12,800.
B) $18,400.
C) $28,000.
D) $22,400.
E) $13,600.

F) B) and D)
G) A) and D)

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

Under variable costing,fixed overhead costs are excluded from product costs.

A) True
B) False

Correct Answer

verified

True

Question 3

Multiple Choice

Review LaterAdd Note

A company has fixed costs of $320,000 and a contribution margin per unit of $15.If the company wants to earn a target $40,000 pretax income,how many units must be sold (rounded to the nearest whole unit) ?

Varigon Co.produces and sells three products-Household,Commercial,and Industrial,and has total fixed costs of $52,000.Sales and cost data follow: Calculate the break-even point in composite units.

Raven Company has a target of $70,000 pre-tax income.The contribution margin ratio is 30%.What amount of dollar sales must be achieved to reach the goal if fixed costs are $36,000?

A manufacturer reports the following information below for its first three years in operation. -Income for year 2 using absorption costing is:

Barclay Bikes manufactures and sells three distinct styles of bicycles: the Youth model sells for $300 and has a unit contribution margin of $105; the Adult model sells for $850 and has a unit contribution margin of $450; and the Recreational model sells for $1,000 and has a unit contribution margin of $500.The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models.If the firm's annual fixed costs total $6,500,000,calculate the firm's break-even point in total sales dollars.

The margin of safety can be expressed in dollars or as a percent of sales.

A company's normal operating range,which excludes extremely high or low operating levels that are not likely to occur,is called the:

Use the following information to determine the break-even point in sales dollars:

Madison Corporation sells three products (M,N,and O) in the following mix: 3:1:2.Unit price and cost data are: Total fixed costs are $340,000. -The break-even point in composite units for the current sales mix (round to the nearest unit) is:

In Keegan Corporation's most recent fiscal year,the company reported pretax earnings of $215,000.Fixed costs totaled $325,800,the unit selling price of the firm's only product was $60,and the variable costs per unit were 40% of the selling price.Based on this information,the firm's break-even point in units was:

Wolowitz Company's product has a contribution margin per unit of $62.50 and a contribution margin ratio of 25%.What is the per unit selling price of the product?

The high-low method can be used to estimate the cost equation using just two points.

The ratio (proportion)of the sales volumes of the various products sold by a company is called the ________.

McCoy Brothers manufactures and sells two products,A and Z in the ratio of 5:2.Product A sells for $75; Z sells for $95.Variable costs for product A are $35; for Z $40.Fixed costs are $418,500.Compute the break-even point in composite units.

The relevant range of operations includes extremely high and low levels of production that are unlikely to occur.

The margin of safety is the excess of:

Curvilinear costs always increase:

Expanse Co.is considering the production and sale of a new product line with the following sales and cost data: unit sales price $125; unit variable costs $50; and total fixed costs of $150,000.Calculate the break-even point in units and in dollar sales.