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Exam 19: Cost-Volume-Profit Analysis

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Question 211

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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.

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Question 212

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

A) 58% X,42% Y
B) 60% X,40% Y
C) 30% X,70% Y
D) 12.5% X,87.5% Y

E) C) and D)
F) B) and C)

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Question 213

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

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

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.

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. ​

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.

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

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

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.

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

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

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

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

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) ?

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

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

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

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