Quiz

Question 26

  1.  

    In applying the high-low method, which months are relevant?

    Month
    Miles
      Total Cost
    January
    80,000
    $ 96,000
    February
    50,000
    80,000
    March
    70,000
    94,000
    April
    90,000
    130,000
     
    A.
    B.
    C.
    D.
3.75 points   

Question 27

  1.  

    At the break-even point of 2,000 units, variable costs are $120,000, and fixed costs are $64,000. How much is the selling price per unit?
    A.
    B.
    C.
    D.
3.75 points   

Question 28

  1.  

    Sales are $500,00
    0 and variable costs are $200,000. What is the contribution margin ratio?
    A.
    B.
    C.
    D.
3.75 points   

Question 29

  1.  

    Winfred Company sells radios for $50 per unit. The fixed costs are $420,000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $120,000 and variable costs will be 50% of the selling price. The new break-even point in units is:
    A.
    B.
    C.
    D.
3.75 points   

Question 30

  1.  

    Newman Company sells MP3 players for $60 each. Variable costs are $40 per unit, and fixed costs total $90,000. How many MP3 players must Newman sell to earn net income of $210,000?
    A.
    B.
    C.
    D.
3.75 points   

Question 31

  1.  

    Blake Company is planning to sell 800,000 units for $1.50 per unit. The contribution margin ratio is 20%. If Blake will break even at this level of sales, what are the fixed costs?
    A.
    B.
    C.
    D.
3.75 points   

Question 32

  1.  

    ISSAC Company has a contribution margin per unit of $21 and a contribution margin ratio of 60%. How much is the selling price of each unit?
    A.
    B.
    C.
    D.
3.75 points   

Question 33

  1.  

    Fixed costs are $2,400,000 and the contribution margin per unit is $120. What is the break-even point?
    A.
    B.
    C.
    D.
3.75 points   

Question 34

  1.  

    Price Company sells 100,000 units for $13 a unit. Fixed costs are $350,0
    00 and net income is $250,000. What should be reported as variable expenses in the CVP income statement?
    A.
    B.
    C.
    D.
3.75 points   

Question 35

  1.  

    Chula Manufacturing Company developed the following data:

    Beginning work in process inventory
    $ 70,000

    Direct materials used
    470,000
    Actual overhead
    550,000
    Overhead applied
    530,000
    Cost of goods manufactured
    1,270,000
    Ending work in process
    50,000

    How much are total manufacturing costs for the period?

    A.
    B.
    C.
    D.
3.75 points   

Leave a Reply