Question 1

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:  If Antique expects to sell 40 units per month,how much is his margin of safety expressed in sales revenue?

Accepted Answer

A)  $2,000
B)  $3,760
C)  $5,760
D)  $2,760E) C) and D)
F) B) and C)

Question 2

When the selling price per unit decreases,the breakeven point ________

Accepted Answer

A)  increases
B)  decreases
C)  remains the same
D)  decreases proportionatelyE) A) and B)
F) B) and C)

Question 3

A cellphone service provider charges $5.00 per month and $0.10 per minute per call.If a customer's current bill is $50.00,how many calling minutes did the customer use?

Accepted Answer

A)  500 minutes
B)  550 minutes
C)  450 minutes
D)  400 minutesE) A) and B)
F) B) and C)

Question 4

Fixed cost per unit is assumed to be constant within a particular relevant range of activity.

Accepted Answer

A) True 
 B)False

Question 5

Jackson Manufacturers has provided the following information regarding the two products that it sells:  Annual fixed costs are $280,000.
How many units must be sold in order for Jackson to breakeven,assuming that Jackson sells five jet boats for every two ski boats sold?

Accepted Answer

A)  70 jet boats and 28 ski boats
B)  50 jet boats and 20 ski boats
C)  20 jet boats and 50 ski boats
D)  45 jet boats and 28 ski boatsE) A) and B)
F) A) and C)

Question 6

For the next year,Hall & Co.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.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a period cost?

Accepted Answer

A)  manufacturing overhead
B)  direct labor cost
C)  direct materials cost
D)  administrative costE) B) and D)
F) B) and C)

Question 8

Divine Foods produces a gourmet condiment which sells for $16.00 per unit.Variable costs are $6 per unit,and fixed costs are $5,000 per month.If Divine expects to sell 1,500 units,compute the margin of safety in dollars.

Accepted Answer

A)  $16,000
B)  $15,000
C)  $10,000
D)  $6,000E) A) and B)
F) A) and C)

Question 9

Young Company has provided the following information:  Calculate the contribution margin per unit.

Accepted Answer

A)  $28
B)  $40
C)  $52
D)  $16E) B) and C)
F) B) and D)

Question 10

The phone bill for a company consists of both fixed and variable costs.Refer to the 4-month data below and apply the high-low method to answer the question.  
-What is the variable cost per minute?

Accepted Answer

A)  $1.25
B)  $0.67
C)  $1.08
D)  $0.58E) B) and C)
F) B) and D)

Exam 20: Cost-Volume-Profit Analysis

A cellphone service provider charges $5.00 per month and $0.10 per minute per call.If a customer's current bill is $50.00,how many calling minutes did the customer use?

Correct Answer
verified

For the next year,Hall & Co.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.

Correct Answer
verified

Young Company has provided the following information: Calculate the contribution margin per unit.

Correct Answer
verified

Which of the following is a period cost?

Correct Answer
verified

Correct Answer
verified

The phone bill for a company consists of both fixed and variable costs.Refer to the 4-month data below and apply the high-low method to answer the question. -What is the variable cost per minute?

Correct Answer
verified

Jackson Manufacturers has provided the following information regarding the two products that it sells: Annual fixed costs are $280,000. How many units must be sold in order for Jackson to breakeven,assuming that Jackson sells five jet boats for every two ski boats sold?

Correct Answer
verified

Fixed cost per unit is assumed to be constant within a particular relevant range of activity.

Correct Answer
verified

When the selling price per unit decreases,the breakeven point ________

Correct Answer
verified

Divine Foods produces a gourmet condiment which sells for $16.00 per unit.Variable costs are $6 per unit,and fixed costs are $5,000 per month.If Divine expects to sell 1,500 units,compute the margin of safety in dollars.

Correct Answer
verified

Exam 20: Cost-Volume-Profit Analysis

A cellphone service provider charges $5.00 per month and $0.10 per minute per call.If a customer's current bill is $50.00,how many calling minutes did the customer use?

Correct AnswerverifiedShow Answer

For the next year,Hall & Co.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.

Correct AnswerverifiedShow Answer

Young Company has provided the following information: Calculate the contribution margin per unit.

Correct AnswerverifiedShow Answer

Which of the following is a period cost?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The phone bill for a company consists of both fixed and variable costs.Refer to the 4-month data below and apply the high-low method to answer the question. -What is the variable cost per minute?

Correct AnswerverifiedShow Answer

Jackson Manufacturers has provided the following information regarding the two products that it sells: Annual fixed costs are $280,000. How many units must be sold in order for Jackson to breakeven,assuming that Jackson sells five jet boats for every two ski boats sold?

Correct AnswerverifiedShow Answer

Fixed cost per unit is assumed to be constant within a particular relevant range of activity.

Correct AnswerverifiedShow Answer

When the selling price per unit decreases,the breakeven point ________

Correct AnswerverifiedShow Answer

Divine Foods produces a gourmet condiment which sells for $16.00 per unit.Variable costs are $6 per unit,and fixed costs are $5,000 per month.If Divine expects to sell 1,500 units,compute the margin of safety in dollars.

Correct AnswerverifiedShow Answer

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