Question 1

Blane Company has the following data:  What will operating income be if units sold double to 100,000 units?

Accepted Answer

The answer of Blane Company has the following data: ...

Question 2

Given the following information:
Variable cost per unit = $5
July fixed cost per unit = $7
Units sold and produced in July = 28,000
What is the total estimated cost for August if 30,000 units are projected to be produced and sold?

Accepted Answer

The answer of Given the following information:
Variable cost per unit...

Question 3

Match each of the following descriptions with the appropriate term (a-e).
-Plots only the difference between total sales and total costs
A)Profit-volume chart
B)Cost-volume-profit chart
C)Sales mix
D)Operating leverage
E)Margin of safety

Accepted Answer

B) Cost-volume-profit chart - shows the relationship between cost, volume, and profits, allowing businesses to determine their break-even point and analyze their profitability at different levels of operation.
C) Sales mix - the proportion of each product a company sells relative to its total sales, which can impact the company's profitability and break-even point.
D) Operating leverage - a measure of how much a company's costs consist of fixed costs versus variable costs, which affects profitability and the break-even point.
E) Margin of safety - the amount of sales a company can lose before it reaches its break-even point, which can help businesses assess their risk and plan for unexpected changes in sales.

Answer: 
A) Profit-volume chart 
 This term specifically refers to plotting only the difference between total sales and total costs.

Question 4

a. If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio?
b. If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?

Accepted Answer

The answer of a. If Swannanoa Company's budgeted sales are...

Question 5

Match each of the following descriptions with the appropriate term (a-e).
-Indicates the possible decrease in sales that may occur before operating loss results
A)Profit-volume chart
B)Cost-volume-profit chart
C)Sales mix
D)Operating leverage
E)Margin of safety

Accepted Answer

The margin of safety indicates the possible decrease in sales that may occur before operating loss results, showing how much sales can fall before a business reaches its breakeven point.

Question 6

Match each of the following descriptions with the appropriate term (a-e).
-The excess of sales revenues over variable costs
A)Relevant range
B)Break-even point
C)Contribution margin
D)Fixed costs
E)Variable costs

Accepted Answer

Contribution margin is the excess of sales revenues over variable costs.

Question 7

Given the following:
Variable cost as a percentage of sales = 60%
Unit variable cost = $30
Fixed costs = $200,000
What is the break-even point in units?

Accepted Answer

The answer of Given the following:
Variable cost as a percentage...

Question 8

Match each of the following descriptions with the appropriate term (a-e).
-Contribution margin divided by operating income
A)Profit-volume chart
B)Cost-volume-profit chart
C)Sales mix
D)Operating leverage
E)Margin of safety

Accepted Answer

The answer of Match each of the following descriptions with...

Question 9

Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed costs are $75,000. Determine the (a) break-even point in sales units and (b) break-even point in sales units if the selling price increased to $100 per unit.

Accepted Answer

The answer of Mia Enterprises sells a product for $90...

Question 10

The manufacturing costs of Mocha Industries for three months of the year are as follows:  Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed costs.

Accepted Answer

The answer of The manufacturing costs of Mocha Industries for...

Question 11

Match each of the following descriptions with the appropriate term (a-e).
-A specific activity range over which the cost changes are of interest
A)Relevant range
B)Break-even point
C)Contribution margin
D)Fixed costs
E)Variable costs

Accepted Answer

The relevant range refers to a specific activity range over which the cost changes are of interest. It is the range of output or sales volume over which the assumptions about the behavior of costs are valid.

Answer: B
 The break-even point is the level of sales at which total revenue equals total costs, and there is no profit or loss. It is the point at which a company's sales revenue equals its total fixed and variable costs.

Answer: C
 Contribution margin is the amount by which sales revenue exceeds variable costs. It is the amount of money a company has left over after deducting all variable costs from its revenue.

Answer: D 
 Fixed costs are expenses that do not change based on the level of production or sales volume. Examples include rent, salaries, and insurance premiums.

Answer: E
 Variable costs are expenses that change based on the level of production or sales volume. Examples include raw materials, direct labor, and sales commissions.

Question 12

Match each of the following descriptions with the appropriate term (a-e).
-Graphically shows costs, sales, and operating profit or loss at various levels of units sold
A)Profit-volume chart
B)Cost-volume-profit chart
C)Sales mix
D)Operating leverage
E)Margin of safety

Accepted Answer

The answer of Match each of the following descriptions with...

Question 13

Copper Hill Inc. manufactures laser printers within a relevant range of production of 70,000 to 100,000 printers per year. The following partially completed manufacturing cost schedule has been prepared:  Complete the preceding cost schedule, identifying each cost by the appropriate letter (a) through (o).

Accepted Answer

The answer of Copper Hill Inc. manufactures laser printers within...

Question 14

Match each of the following descriptions with the appropriate term (a-e).
-The relative distribution of sales among products sold by a company
A)Profit-volume chart
B)Cost-volume-profit chart
C)Sales mix
D)Operating leverage
E)Margin of safety

Accepted Answer

The term that matches the definition of "The relative distribution of sales among products sold by a company" is Sales mix. The other terms have different definitions: 
A) Profit-volume chart: A graph that shows the relationship between a company's revenue, costs, and profit at different levels of sales volume. 
B) Cost-volume-profit chart: A graph that shows the relationship between a company's revenue, costs, and profit at different levels of sales volume, but also takes into account the company's fixed and variable costs. 
D) Operating leverage: A measure of how sensitive a company's profits are to changes in its sales volume. 
E) Margin of safety: The amount by which actual or expected sales exceed the break-even point for a product or service.

Question 15

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

Accepted Answer

The answer of Bluegill Company sells 45,000 units at $18...

Question 16

Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is $60 per unit, and fixed costs are $270,000.​
Determine the (a) unit sales price and (b) break-even point in sales units if the company desires a target profit of $36,000.

Accepted Answer

The answer of Atlantic Company sells a product with a...

Question 17

The manufacturing costs of Carrie Industries for the first three months of the year are provided below.  Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed cost.

Accepted Answer

The answer of The manufacturing costs of Carrie Industries for...

Question 18

Global Publishers has collected the following data for recent months:  
a. Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation.
b. What is the estimated cost for a month in which 19,000 issues are published?

Accepted Answer

The answer of Global Publishers has collected the following data...

Question 19

Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and operating loss is $(50,000). Determine the (a) unit contribution margin, (b) contribution margin ratio, and (c) fixed costs per unit at production of 25,000 units.

Accepted Answer

The answer of Penny Company sells 25,000 units at $59...

Question 20

Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $20 per unit, while fixed costs are $85,000. Determine the (a) break-even point in sales units and (b) break-even point in sales units if the selling price increased to $80 per unit. Round your answer to the nearest whole number.

Accepted Answer

The answer of Gladstorm Enterprises sells a product for $60...

Quiz 20: Cost-Volume-Profit Analysis

Blane Company has the following data: What will operating income be if units sold double to 100,000 units?

Given the following information: Variable cost per unit = $5 July fixed cost per unit = $7 Units sold and produced in July = 28,000 What is the total estimated cost for August if 30,000 units are projected to be produced and sold?

Match each of the following descriptions with the appropriate term (a-e). -Plots only the difference between total sales and total costs A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

a. If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio? b. If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?

Match each of the following descriptions with the appropriate term (a-e). -Indicates the possible decrease in sales that may occur before operating loss results A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

Match each of the following descriptions with the appropriate term (a-e). -The excess of sales revenues over variable costs A)Relevant range B)Break-even point C)Contribution margin D)Fixed costs E)Variable costs

Given the following: Variable cost as a percentage of sales = 60% Unit variable cost = $30 Fixed costs = $200,000 What is the break-even point in units?

Match each of the following descriptions with the appropriate term (a-e). -Contribution margin divided by operating income A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed costs are $75,000. Determine the (a) break-even point in sales units and (b) break-even point in sales units if the selling price increased to $100 per unit.

The manufacturing costs of Mocha Industries for three months of the year are as follows: Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed costs.

Match each of the following descriptions with the appropriate term (a-e). -A specific activity range over which the cost changes are of interest A)Relevant range B)Break-even point C)Contribution margin D)Fixed costs E)Variable costs

Match each of the following descriptions with the appropriate term (a-e). -Graphically shows costs, sales, and operating profit or loss at various levels of units sold A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

Match each of the following descriptions with the appropriate term (a-e). -The relative distribution of sales among products sold by a company A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

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

Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is $60 per unit, and fixed costs are $270,000. Determine the (a) unit sales price and (b) break-even point in sales units if the company desires a target profit of $36,000.

The manufacturing costs of Carrie Industries for the first three months of the year are provided below. Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed cost.

Global Publishers has collected the following data for recent months: a. Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation. b. What is the estimated cost for a month in which 19,000 issues are published?

Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and operating loss is $(50,000). Determine the (a) unit contribution margin, (b) contribution margin ratio, and (c) fixed costs per unit at production of 25,000 units.

Quiz 20: Cost-Volume-Profit Analysis

Blane Company has the following data: What will operating income be if units sold double to 100,000 units?

Given the following information: Variable cost per unit = $5 July fixed cost per unit = $7 Units sold and produced in July = 28,000 What is the total estimated cost for August if 30,000 units are projected to be produced and sold?

Match each of the following descriptions with the appropriate term (a-e). -Plots only the difference between total sales and total costs A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

a. If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio? b. If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?

Match each of the following descriptions with the appropriate term (a-e). -Indicates the possible decrease in sales that may occur before operating loss results A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

Match each of the following descriptions with the appropriate term (a-e). -The excess of sales revenues over variable costs A)Relevant range B)Break-even point C)Contribution margin D)Fixed costs E)Variable costs

Given the following: Variable cost as a percentage of sales = 60% Unit variable cost = $30 Fixed costs = $200,000 What is the break-even point in units?

Match each of the following descriptions with the appropriate term (a-e). -Contribution margin divided by operating income A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed costs are $75,000. Determine the (a) break-even point in sales units and (b) break-even point in sales units if the selling price increased to $100 per unit.

The manufacturing costs of Mocha Industries for three months of the year are as follows: Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed costs.

Match each of the following descriptions with the appropriate term (a-e). -A specific activity range over which the cost changes are of interest A)Relevant range B)Break-even point C)Contribution margin D)Fixed costs E)Variable costs

Match each of the following descriptions with the appropriate term (a-e). -Graphically shows costs, sales, and operating profit or loss at various levels of units sold A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

Match each of the following descriptions with the appropriate term (a-e). -The relative distribution of sales among products sold by a company A)Profit-volume chart B)Cost-volume-profit chart C)Sales mix D)Operating leverage E)Margin of safety

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

Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is $60 per unit, and fixed costs are $270,000.​ Determine the (a) unit sales price and (b) break-even point in sales units if the company desires a target profit of $36,000.

The manufacturing costs of Carrie Industries for the first three months of the year are provided below. Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed cost.

Global Publishers has collected the following data for recent months: a. Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation. b. What is the estimated cost for a month in which 19,000 issues are published?

Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and operating loss is $(50,000). Determine the (a) unit contribution margin, (b) contribution margin ratio, and (c) fixed costs per unit at production of 25,000 units.

Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is $60 per unit, and fixed costs are $270,000. Determine the (a) unit sales price and (b) break-even point in sales units if the company desires a target profit of $36,000.