Quiz

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

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?

Sales are $500,00
0 and variable costs are $200,000. What is the contribution margin ratio?

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:

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?

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?

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?

Fixed costs are $2,400,000 and the contribution margin per unit is $120. What is the break-even point?

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?

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