POST ACC211 Unit 3 Quiz C5 Cost Volume Profit

| June 4, 2016

Question
Question 1

The difference between total sales in dollars and total variable expenses is called:

net operating income.

net profit.

the gross margin.

Correct the contribution margin.

Question 2

East Company manufactures and sells a single product with a positive contribution margin. If the selling price and the variable expense per unit both increase 5% and fixed expenses do not change, what is the effect on the contribution margin per unit and the contribution margin ratio?

Option A

Option B

Option C

Option D

Question 3

With a selling price per unit of $60, a contribution margin of 40%, and fixed expenses of $60,000, the break-even in unit sales will be:

2,500

5,000

6,000

500

Question 4

Copy of A company that makes organic fertilizer has supplied the following data:

The company’s unit contribution margin is closest to:

$5.25

$4.05

$3.50

$2.35

Question 5

A manufacturer of tiling grout has supplied the following data:

The company’s break-even in kilograms is closest to:

215,000 kilograms

55,302 kilograms

307,765 kilograms

464,865 kilograms

Question 6

A manufacturer of tiling grout has supplied the following data:

The company’s contribution margin ratio is closest to:

46.3%

37.0%

63.0%

53.7%

Question 7

A tile manufacturer has supplied the following data:

If the company increases its unit sales volume by 3% without increasing its fixed expenses, then total net operating income should be closest to:

$3,000

$101,371

$115,480

$103,000

Question 8

All other things the same, which of the following would be true of the contribution margin and variable expenses of a company with high fixed costs and low variable costs as compared to a company with low fixed costs and high variable costs?

Option A

Option B

Option C

Option D

Question 9

Aziz Corporation produces and sells a single product. Data concerning that product appear below:

Selling price per unit = $130.00

Variable expense per unit = $27.30

Fixed expense per month = $165,347

Determine the monthly break-even in unit and total dollar sales.

1,410 units; $183,300

1,610 units; $209,300

1,500 units, $195,000

2,000 units; $260,000

Question 10

Cindy, Inc. sells a product for $10 per unit. The variable expenses are $6 per unit, and the fixed expenses total $35,000 per period. By how much will net operating income change if sales are expected to increase by $40,000?

$16,000 increase

$5,000 increase

$24,000 increase

$11,000 decrease

Question 11

Budget data for the Bidwell Company are as follows:

The number of units Bidwell would have to sell to earn a net operating income of $150,000 is:

100,000 units

120,000 units

112,000 units

145,000 units

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