Question 1

Piper Technology's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales required to realize an operating income of $200,000?

Accepted Answer

A)  14,167 units
B)  12,500 units
C)  16,000 units
D)  11,538 unitsE) B) and D)
F) None of the above

Question 2

If fixed costs are $500,000, the unit selling price is $55, and the unit variable costs are $30, what is the break-even sale units if fixed costs are increased by $80,000?

Accepted Answer

A)  10,545 units
B)  19,333 units
C)  23,200 units
D)  25,000 unitsE) A) and D)
F) B) and D)

Question 3

Zipee Inc.'s unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units.How much will operating income change if sales increase by 5,000 units?

Accepted Answer

A)  $125,000 decrease
B)  $175,000 increase
C)  $75,000 increase
D)  $247,500 increaseE) B) and D)
F) A) and D)

Question 4

The Rocky Company reports the following data:  Rocky Company's operating leverage is

Accepted Answer

A)  6.7
B)  2.7
C)  1.0
D)  1.3E) C) and D)
F) B) and D)

Question 5

If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would

Accepted Answer

A)  decrease
B)  increase
C)  remain the same
D)  increase or decrease, depending upon the percentage increase in wage ratesE) A) and D)
F) C) and D)

Exam 4: Cost Behavior and Cost-Volume-Profit Analysis

The Rocky Company reports the following data: Rocky Company's operating leverage is

Correct Answer
verified

Zipee Inc.'s unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units.How much will operating income change if sales increase by 5,000 units?

Correct Answer
verified

Piper Technology's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales required to realize an operating income of $200,000?

Correct Answer
verified

If fixed costs are $500,000, the unit selling price is $55, and the unit variable costs are $30, what is the break-even sale units if fixed costs are increased by $80,000?

Correct Answer
verified

If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would

Correct Answer
verified

Exam 4: Cost Behavior and Cost-Volume-Profit Analysis

The Rocky Company reports the following data: Rocky Company's operating leverage is

Correct AnswerverifiedShow Answer

Zipee Inc.'s unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units.How much will operating income change if sales increase by 5,000 units?

Correct AnswerverifiedShow Answer

Piper Technology's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales required to realize an operating income of $200,000?

Correct AnswerverifiedShow Answer

If fixed costs are $500,000, the unit selling price is $55, and the unit variable costs are $30, what is the break-even sale units if fixed costs are increased by $80,000?

Correct AnswerverifiedShow Answer

If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified