FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 21: Cost-Volume-Profit Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

True/False

Review LaterAdd Note

Review Later

The type of information provided by managerial accounting differs from the information provided by financial accounting.

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

Young Company has provided the following information: $\begin{array} { | l | r | } \hline \text { Price per unit } & \$ 40 \\\hline \text { Variable cost per unit } & 12 \\\hline \text { Fixed costs per month } & \$ 10,000 \\\hline\end{array}$ Calculate the contribution margin per unit.

A) $28
B) $40
C) $52
D) $16

Correct Answer

verified

Show Answer

Question 83

Multiple Choice

Review LaterAdd Note

Which of the following formulae is the right formula for calculating contribution margin ratio?

An increase in selling price per unit decreases the contribution margin per unit.

The high-low method is used to:

The degree of operating leverage can be measured by:

Variable cost per unit, within the relevant range, will:

Venus Inc. has fixed costs of $300,000. Total costs, both fixed and variable, are $450,000 when 30,000 units are produced. Calculate the total costs if the volume increases to 60,000 units.

A company's proportion of fixed costs to variable costs is called its:

Higher fixed costs decrease the total contribution margin required to break even.

When the selling price per unit decreases, the contribution margin per unit:

Under variable costing, fixed manufacturing overhead costs are treated as a product cost.

Contribution margin ratio is the ratio of contribution margin to:

Total variable costs change in direct proportion to a change in volume.

Under variable costing, the fixed manufacturing overhead costs are classified as period costs and are expensed in the period in which they are incurred.

The operating income of Jutox Inc. is $40,000 for March using both variable costing and absorption costing. Which of the following statements must be true of Jutox for the above statement to be true?

Antique Works is owned and operated by a craftsman who makes replicas of historic firearms for museums, sportsmen, and collectors. He is currently producing 40 flintlock muskets per month. Cost data are as follows: $\begin{array} { | l | r | } \hline \text { Price per unit } & \$ 720 \\\hline \text { Variable costs per unit } & 470 \\\hline \text { Fixed costs per month } & 8,000 \\\hline\end{array}$ If Antique expects to sell 40 units per month, how much is his margin of safety expressed in sales revenue?

For the next year, Hall Company predicts the sale of 15,000 units of a product with a contribution margin of $6 per unit and 30,000 units of another product with a contribution margin of $9 per unit. The weighted-average contribution margin per unit is $8.

Mist Company sells two products-A and B. Mist predicts that it will sell 2,500 units of A and 1,500 units of B during the next period. The unit contribution margins are $3.50 and $4.80, respectively. What is the weighted-average unit contribution margin?

Total fixed costs can change from one relevant range to another.