M4_A3_Quiz - AU ACC202
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M4_A3_Quiz.docx
Stites Corporation will make $100,000 if it sells 8,000 bathtubs for $200 per unit. If the contribution margin is 30%, what will the fixed costs be?
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· $1,020,000 · $580,000 · $480,000 · $380,000 |
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Bookmark question for later
A firm's per-unit contribution margin is $30, its fixed costs are $67,500, and its daily production output is 18 units. How many days will it take to break even after it is in operation?
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· 100 days · 139 days · 155 days · 125 days |
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Bookmark question for later
Exhibit 21-5
The following is a partial income statement for Duncan Corporation for 2011:
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Duncan Corporation |
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Projected Income Statement |
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For the Year Ended December 31, 2011 |
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Sales revenue (750 units at $20) |
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$15,000 |
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Manufacturing cost of goods sold: |
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Direct materials used |
$2,250 |
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Direct labor |
2,100 |
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Variable manufacturing overhead |
2,650 |
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Fixed manufacturing overhead |
750 |
7,750 |
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Gross margin |
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$ 7,250 |
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Selling expenses: |
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Variable costs |
$1,100 |
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Fixed costs |
950 |
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Administrative expenses: |
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Variable costs |
900 |
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Fixed costs |
620 |
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Total selling and administrative expenses |
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3,570 |
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Operating income |
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$ 3,680 |
Refer to Exhibit 21-5. How many units of its product will Duncan Corporation have to sell to break even?
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· 116 · 194 · 300 · 290 |
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Bookmark question for later
Refer to Exhibit 21-5. What will be Duncan Corporation's operating income if sales volume increases by 40 percent?
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· $2,400 · $6,800 · $6,080 · $7,280 |
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Bookmark question for later
At a break-even point of 600 units sold, the variable costs were $600 and the fixed costs were $300. What will the sale of each additional unit contribute to profit before income taxes?
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· $1.00 · $0 · $0.50 · $1.50 |
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Bookmark question for later
Collins Co. earned a profit of $2,000 in January. The company has estimated that sales will increase by $13,500 in February. Assume that fixed costs for January were $3,000 (and are not expected to change) and the variable cost ratio is 40%. What is the expected profit for the next month?
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· $13,500 · Not enough information available · $8,100 · $10,100 |
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Bookmark question for later
After the break-even point is reached, a firm that has a per-unit contribution margin of $20 will have a $500 increase in profits when sales increase by:
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· 20 units · 50 units · 15 units · 25 units |
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Bookmark question for later
Stanley Company manufactures and sells one product for $200 per unit. The variable costs per unit are $140, and monthly total fixed costs are $7,500. Last month Stanley sold 100 units and expects sales to remain the same for the current month. If fixed costs increase by $1,500, what is the break-even point for the current month?
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· $25,000 · $45,000 · $30,000 · $12,800 |
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Bookmark question for later
Everclean Company cleans draperies. It charges $90 to clean a full-size drape, and its variable and fixed costs are $55 per drape and $10,000 per year, respectively. Given these data, if Everclean's variable costs were reduced to $50 per drape, how many drapes would the firm have to clean to break even?
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· 200 · 286 · 250 · 112 |
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Bookmark question for later
Everclean Company cleans draperies. It charges $90 to clean a full-size drape, and its variable and fixed costs are $55 per drape and $10,000 per year, respectively. Given these data, if Everclean's fixed costs increased to $15,000, how many drapes must the firm clean to earn $60,000?
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· 429 · 2,143 · 2,000 · 1,364 |
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