Principles of Managerial Accounting (Acct 2102)

Chapter 6 Take Home Quiz

1.

The concept of cost-volume-profit analysis is based on classifying costs as

a.
fixed and variable costs.
b.
variable product and period costs.
c.
product controllable and uncontrollable costs.
d.
both A and B
e.
both A and C

2.

The contribution margin per unit is calculated as the difference between

a.
price and fixed cost per unit.
b.
price and variable cost per unit.
c.
price and product cost per unit.
d.
fixed cost per unit and variable cost per unit.
e.
fixed cost per unit and product cost per unit.

3.

The break-even point in sales dollars can be calculated by dividing

a.
fixed expenses by the unit contribution margin.
b.
variable expenses by the unit contribution margin.
c.
fixed expenses by the contribution margin ratio.
d.
variable expenses by the contribution margin ratio.
e.
selling price by the contribution margin ratio.
Consider the following information when answering the questions below.
Selling price per unit
Contribution margin

$25
$10

Fixed costs

$45,000

4.

Refer to the above information. What is the number of units that must be sold to break
even?
a.
4,500
b.
4,000
c.
3,000
d.
1,800
e.
367

5.

Refer to the above information. To earn a targeted net profit of $50,000 the total dollar
value of sales must be at least
a.
$ 8,000
b.
$ 10,000
c.
$112,500
d.
$122,500
e.
$237,500

Key:
1.
A
2.
B
3.
C

4.
5.

A
E