FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Cost Behavior and Cost-Volume-Profit Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

As production increases, the fixed cost per unit

A) increases
B) decreases
C) remains the same
D) either increases or decreases, depending on the variable costs

E) None of the above
F) B) and D)

Correct Answer

verified

Show Answer

Question 42

True/False

Review LaterAdd Note

Review Later

Cost behavior refers to the methods used to estimate costs for use in managerial decision making.

A) True
B) False

Correct Answer

verified

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

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

What would be the difference in Timmer's net income for the year if it used variable costing instead of absorption costing?

Jacob Inc. has fixed costs of $240,000, the unit selling price is $32, and the unit variable costs are $20. What are the old and new break-even sales units) if the unit selling price increases by $4?

Figure 21-1 -Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

Which of the following statements is true regarding fixed and variable costs?

Bobby Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. The sales mix for product X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y.

Costs that remain constant in total dollar amount as the level of activity changes are called

In cost-volume-profit analysis, all costs are classified into the following two categories:

Racer Industries has fixed costs of $900,000. Selling price per unit is $250, and variable cost per unit is $130. Required: a) How many units must Racer sell in order to break even? b) How many units must Racer sell in order to earn a profit of $480,000? c) A new employee suggests that Racer Industries sponsor a 10K marathon as a form of advertising. The cost to sponsor the event is $7,200. How many more units must be sold to cover this cost?

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 sale units) ?

In an absorption costing income statement, the manufacturing margin is the excess of sales over the variable cost of goods sold.

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.

Lee Industry sales are $525,000, variable costs are 53% of sales, and operating income is $19,000. What is the contribution margin ratio?

Piper Technology's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales required to realize an operating income of $200,000?

If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would

If fixed costs are $1,200,000, the unit selling price is $240, and the unit variable costs are $110, what is the amount of sales required to realize an operating income of $200,000?

Carter Co. sells two products, Arks and Bins. Last year, Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are: $\begin{array} { l l l l } & \text { Unit Selling } & \text { Unit Variable } & \text { Unit Contribution } \\\text { Product } & \text { Price } & \text { Cost } & \text { Margin } \\\hline \text { Arks } & \$ 120 & \$ 80 & \$ 40 \\\text { Bins } & 80 & 60 & 20\end{array}$ -What was Carter Co.'s unit contribution margin of E?

The Tom Company reports the following data: Sales $600,000 Variable costs 400,000 Fixed costs 100,000 Determine Tom Company's operating leverage.