FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 18: Cost-Volume-Profit

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

In applying the high-low method, what is the unit variable cost?

A) $2.88
B) $2.50
C) $3.20
D) Cannot be determined from the information given.

E) A) and C)
F) All of the above

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

The fixed cost element of a mixed cost is the cost of having a service available.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

Essay

Review LaterAdd Note

Melody Manufacturing produces a hip-hop CD that is sold for $20. The contribution margin ratio is 40%. Fixed expenses total $9,200. Instructions (a) Compute the variable cost per unit. (b) Compute how many CDs Melody Manufacturing will have to sell in order to break even. (c) Compute how many CDs Melody Manufacturing will have to sell in order to make a target net income of $16,200.

Which one of the following is a name for the range over which a company expects to operate?

Match the items below.

April Industries sells a product with a contribution margin of $12 per unit, fixed costs of $223,200, and sales for the current year of $300,000. How much is April's break-even point?

In evaluating the margin of safety, the

If volume increases, all costs will increase.

Why is identification of a relevant range important?

If Qualls Quality Airline cuts its domestic fares by 30%,

_________________ divided by the contribution margin ratio will give the amount of _________________ to break even.

Sandburg Manufacturing manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,000 units. The Utilities and Maintenance are mixed costs. The fixed portions of these costs are $300 and $200, respectively. Instructions Calculate the expected costs to be incurred when production is 4,000 units. Use your knowledge of cost behavior to determine which of the other costs are fixed or variable.

At the break-even point of 2,000 units, variable costs are $165,000, and fixed costs are $96,000. How much is the selling price per unit?

A target net income is calculated by taking actual sales minus the margin of safety.

Unit fixed costs __________________ with the changes in the level of activity.

Which of the following is not a mixed cost?

Gall Manufacturing sells a product for $50 per unit. The fixed costs are $840,000 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 $200,000 and variable costs will be 50% of the selling price. The new break-even point in units is:

Contribution margin

If the unit contribution margin is $1 and unit sales are 10,000 units above the break-even volume, then net income will be $10,000.

Kipling Company has sales of $1,500,000 for the first quarter of 2016. In making the sales, the company incurred the following costs and expenses. Instructions Calculate net income under CVP for 2016.