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Exam 19: Cost-Volume-Profit Analysis

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Question 211

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If direct materials cost per unit increases,the break-even point will increase.

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B) False

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Question 212

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Bluegill Company sells 45,000 units at $18 per unit.Fixed costs are $62,000 and income from operations is $298,000.Determine the (a)variable cost per unit,(b)unit contribution margin,and (c)contribution margin ratio.

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Question 213

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The Waterfall Company sells a product for $150 per unit.The variable cost is $80 per unit,and fixed costs are $270,000. ​ Determine the (a)break-even point in sales units,and (b)break-even points in sales units if the company desires a target profit of $36,000.Round your answer to the nearest whole number.

Which of the following is an example of a cost that varies in total as the number of units produced changes?

Assuming that last year's fixed costs totaled $675,000.What was Rusty Co.'s break-even point in units?

If yearly insurance premiums are increased,this change in fixed costs will result in an increase in the break-even point.

If sales total $2,000,000,fixed costs total $800,000,and variable costs are 60% of sales,the contribution margin ratio is 60%.

For purposes of analysis,mixed costs can generally be separated into their variable and fixed components.

What was Carter Co.'s sales mix last year?

If sales total $2,000,000,fixed costs total $800,000,and variable costs are 60% of sales,the contribution margin ratio is 40%.

What was Rusty Co.'s sales mix last year?

The reliability of cost-volume-profit analysis does not depend on the assumption that costs can be accurately divided into fixed and variable components.

Given the following cost and activity observations for Smithson Company's utilities,use the high-low method to calculate Smithson's fixed costs per month.Do not round your intermediate calculations.

Given the following cost and activity observations for Bounty Company's utilities,use the high-low method to calculate Bounty' variable utilities costs per machine hour.Round your answer to the nearest cent. ​

If fixed costs are $850,000 and variable costs are 60% of sales,what is the break-even point (dollars) ?

For the current year ending January 31,Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50.For the coming year,a new wage contract will increase the unit variable cost to $55.50.The selling price of $70.00 per unit is expected to remain the same.

If a business had sales of $4,000,000 and a margin of safety of 25%,the break-even point was

If fixed costs are $300,000,the unit selling price is $31,and the unit variable costs are $22,what is the break-even sales (units) if fixed costs are reduced by $30,000?

If Kaden Company's fixed costs are $46,800,the unit selling price is $42,and the unit variable costs are $24.What is the break-even sales (units) ?

When a business sells more than one product at varying selling prices,the business's break-even point can be determined as long as the number of products does not exceed