FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Cost Behavior and Cost-Volume-Profit Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

The contribution margin ratio is:

A) the same as the variable cost ratio.
B) the same as profit.
C) the portion of equity contributed by the stockholders.
D) the same as the profit-volume ratio.

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Foggy Co.has the following operating data for its manufacturing operations:

A) increase by 400 units.
B) increase by 640 units.
C) decrease by 640 units.
D) increase by 800 units.

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

Which of the following conditions would cause the break-even point to decrease?

The point where the profit line intersects the horizontal axis on the profit-volume chart represents:

Currently,fixed costs are $540,000,the unit selling price is $95,and the unit variable cost is $60.What would be the break-even sales (in units) ,if the unit selling price is increased by $10?

If a business sells four products,it is not possible to estimate the break-even point.

Which of the following graphs illustrates the behavior of a total fixed cost within the specified relevant range?

If sales total $1,000,000,fixed costs total $200,000,and variable costs are 55% of the sales,the contribution margin ratio is 55%.

The point where the profit line intersects the left vertical axis on the profit-volume chart represents:

Variable costs as a percentage of sales is equal to 100% minus the contribution margin ratio.

Variable costs as a percentage of sales for Protoveo Inc.are 65%,sales are $500,000,and fixed costs are $125,000.How much would operating income change if sales decrease by $10,000?

Fixed costs are costs that vary in total dollar amount as the level of activity changes.

Lauder Company had fixed costs of $282,500,variable costs of $645,000,and actual sales amounted to $1,100,000.If the company has a break-even point at $750,000 in sales revenue,determine (a)the margin of safety expressed in dollars,(b)the margin of safety expressed as a percentage of sales,(c)the contribution margin ratio,and (d)the operating income.

The ratio that indicates the percentage of each sales dollar available to cover the fixed costs and to provide operating income is termed as contribution margin ratio.

Which of the following is true about the changes in fixed cost?

If a business sells two products,it is not possible to estimate the break-even point.

Rouney Co.has budgeted that factory supervisors' salary will increase by 10%.If selling prices and all other cost relationships are held constant,next year's break-even point would:

Cost behavior refers to the manner in which:

Only a single line,which represents the difference between total sales revenues and total costs,is plotted on the cost-volume-profit chart.

Given the following cost and activity observations for Alifix Company's utilities,use the high­low method to calculate Alifix's fixed costs per month.