29 Jun Question 28.Which is the true statement? a.In a CVP income Statement, costs
Question
28.Which is the true statement?
a.In a CVP income Statement, costs and expenses are classified only by function
b.The CVP income statement is prepared for both internal and external use
c.The CVp income statement shows contribution margin instead of gross profit
d.In a traditional income statement,costs and expenses are classified as either variable or fixed
29.Variable costs are 60% of the unit selling price.
The contribution margin ratio is 40%
The contribution margin per unit is $500
The fixed costs are $300,000
Which of the following does not express the break-even point?
a.300,000+.60X=X
b.300,000+.40X=X
c.300,000/$500=X
d.300,000/.40=X
30.A CVP graph does not include a
a.variable cost line
b.fixed cost line
c.sales line
d.total cost line
31.Boswell company reported the following information for the current year:Sales(50,000 units)$1,000,000, direct materials and direct labor 500,000, other variable costs 50,000, and fixed costs 270,000.
31-1 What is Boswell’s break-even point in units?
a.24,546
b.30,000
c.38,334
d.42,188
31-2 What is Boswell’s contribution margin ratio?
a.68%
b.45
c.32
d.55
32.Walters Corporation sells radios for %50 per unit.The fixed costs are 420,000 and the variable costs are 60% of the selling price.As a result of new automated equipment,it is anticipated that fixed costs will increase by 100,000 and variable costs will be 50% of the selling price.The new break-even point in units is
a21,000
b20,800
c20,600
d16,800
33.Cunningham,Inc. sells MP3 players for $60 each.Variable costs are $40 per unit, and fixed costs total $90,000.What sales are needed by Cunningham to break even?
a.120,000
b.225,000
c.270,000
d.360,000
34.What is the key factor in determining sales mix if company has limited resources?
a.Contribution margin per unit of limited resource
b.The amount of fixed costs per unit
c.Total contribution margin
d.The cost of limited resources
35. (Oven Hours Required) (Contribution Margin Per Unit)
Muffins 0.2 $3 $15/hour
Coffee Cakes 0.3 $4 $13.33 / hour
The company has oven capacity of 1,200hours.How much will contribution margin be if it produces only the most profitable product?
a.12,000
b.16,000
c.18,000
d.24,000
36.Curtis Corporation’s contribution margin is $20 per unit for Product A and $24 for Product B.Product A requires 2 machine hours and Product B requires 4 machine hours.How much is the contribution margin per unit of limited resource of reach product?
A B
a.$10 $6
b.$10 $6.66
c.$8 $6
d.$8 $6.66
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