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Assignment Instructions
Quiz: 9

eopardise the grading process):

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cell colored yellow
w, choose the appropriate response from the dropdown

assignment is Friday, March 27, 2015 --- 5:00:00 PM

ns

MC-001

The sales and cost data for two companies in the transportation industry are a

Sales
Variable costs
Contribution margin
Fixed costs
Operating Income

Y Company's margin of safety (MOS) in sales dollars is calculated to be (round


A.
B.
C.
D.
E.

Answer: E.

MC-002

$23,226
$37,732
$41,505
$39,619
$22,120

$81,900

Staley Co.'s operating income is calculated to be:

Sales price
Variable costs
Unit contribution margin
Assume that Staley Co. is currently selling 580 computer monitors per month

If an $17,100 increase in the advertising budget would increase monthly sales


A.
B.
C.
D.

E.
Answer: D.

$18,269
$21,153
$17,307
$19,230
$20,192

$323,800.00
$223,470.00
$100,330.00

MC-003

Which of the following statements regarding CVP analysis is TRUE?

It is impossible to apply when there are multiple products sold by the firm in q
It relies on the use of regression analysis to solve for the point of optimum pro
Because of cost-structure issues, it cannot be used in a service setting
It cannot be used in conjunction with activity-based costing (ABC)
It is a short-term profit-planning tool

MC-004

The CVP profit-planning model assumes that over the relevant range of activit

A.
B.
C.
D.
E.

Answer: E.

A.

B.

C.

D.

E.
Answer: A.

MC-005

Both revenues and total costs are linear


Only revenues and fixed costs are linear
Only revenues are linear
Variable cost per unit decreases because of increases in productivity
Only revenues and variable costs are linear

The following information pertains to Korning Corp:


Selling price per unit
Variable cost per unit
Total fixed costs
Income tax rate

$710
$262
$343,950
36

How many total units must be sold to obtain an after-tax profit of $50,950?
A.

B.

C.

D.
Answer: A.

MC-006

945
851
993
898

$448

In the current year, Becker Sofa Company expected to sell 13,400 leather sofa

Becker Sofa Company's margin of safety (MOS) in units is:


A.
B.
C.
D.
E.

Answer: E.

MC-007

10,977
11,476
10,029
9,480
9,979

Cleaning Care Inc. expects to sell 10,000 mops. Fixed costs (for the year) are e
Cleaning Care's margin of safety ratio (MOS%) is:

A.
B.
C.

D.

E.
Answer: C.

MC-008

21%
71%
25%
79%
75%

During the current year, OutlyTech Corp. expected to sell 24,500 telephone sw
OutlyTech's margin of safety (MOS) in sales dollars is:

A.
B.

C.

D.

E.
Answer: B.

MC-009

$61,981,458
$56,346,780
$59,164,119
$70,433,476
$67,616,137

24500
12403000
3230
1472

Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The

Sales volume in units


Unit sales price
Unit variable cost
Unit contribution margin

It takes one machine hour to produce each product. Total fixed costs for the m

Assuming that sales mix remains constant in units, what is the breakeven poin
A.
B.
C.
D.

E.
Answer: D.

MC-010

754
651
719
685
788

The sales and cost data for two companies in the transportation industry are a

Sales
Variable costs
Contribution margin
Fixed costs
Operating Income
X Company's degree of operating leverage (DOL) at the current sales volume
A.
B.

C.

D.

E.
Answer: B.

MC-011

4.77
4.34
4.12
4.56
3.91

4.33928571

Cost-volume-profit (CVP) relationships that are curvilinear may be analyzed lin

A.

B.

C.

D.

E.
Answer: A.

A relevant range of volume


Relevant fixed costs
The multi-product/multi-service context
Relevant variable costs
Fixed and semi-variable costs

Grant's Western Wear is a retailer of western hats located in Atlanta, Georgia.


aggressive in their sales efforts. Currently the economy of Atlanta is really hum
western wear stores. Also, because of the rapid growth in sales, Grant is findin

MC-012

Sales
Per-unit variable costs
Invoice cost
Sales commissions
Total per unit variable costs
Total annual fixed costs
Advertising
Rent
Salaries
Total fixed costs
If 23,500 hats were sold, Grant's operating income would be:
A.
B.
C.
D.

E.
Answer: D.

MC-013

$83,012
$104,813
$110,682
$83,850
$92,235

Which of the following illustrates how the level of operating profit changes ove
A. Revenue-cost graph
B. Revenue-volume graph
C. Profit-volume graph


D. Cost-revenue chart

E. Profit-cost graph
Answer: C.

MC-014

In the current year, Becker Sofa Company expected to sell 11,800 leather sofa

Becker Sofa Company's margin of safety ratio (MOS%) is (rounded to two deci
A.

B.

C.

D.

E.
Answer: A.

MC-015
A.

B.

C.

D.

E.
Answer: A.

MC-016
A.
B.
C.
D.

E.
Answer: D.

69.35%
76.29%
69.70%
83.22%
72.82%

11800
8390000
4540
2220

CVP analysis using activity-based costs will tend to shift some costs from fixed
Higher or lower breakeven sales, depending on batch size
A higher contribution margin per unit
Higher breakeven sales
Lower breakeven sales
A lower contribution margin per unit

Which of the following is a technique most suited to deal with uncertainty rega
Net present value (NPV) analysis
Linear programming
Regression analysis
Sensitivity analysis
Constrained optimization analysis

MC-017

Grant's Western Wear is a retailer of western hats located in Atlanta, Georgia.


aggressive in their sales efforts. Currently the economy of Atlanta is really hum
western wear stores. Also, because of the rapid growth in sales, Grant is findin
Examine these two charts.

$0 Err:512
$0.00 Err:512
$0.00 Err:512
$0.00 Err:512
Err:512
Err:512
Err:512
Err:512
Err:512

Total Revenue
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512

Which cost strategy has the lower operating leverage?


A.
B.
C.
D.
E.

Answer: E.

MC-018

Cost strategy A
Cost strategy A and B have same fixed cost
No feasible answer
Cost strategy B has no fixed cost
Cost strategy B

Examine this algebra.

What does this algebraic model represent?


A.
B.

C.

D.

E.
Answer: B.

Income taxes have the following effect on the breakeven point calculation:

MC-019
A.
B.

C.

D.

E.
Answer: B.

A.
B.
C.
D.
E.

Answer: E.

MC-021

They
They
They
They
They

generally increase the breakeven point


have no effect on the breakeven point
generally decrease the breakeven point
may increase or decrease the breakeven point, depending on the cost st
increase the variable cost per unit

Calculating the margin of safety (MOS) measure will help a firm answer which

MC-020

Profit after tax


Operating profit
Contribution margin per unit
Profit before tax
Total contribution margin

Will we break even?


How much profit will we earn?
How much will profits change if sales change?
Are we using our debt wisely?
How much revenue can we lose before we drop below the breakeven point?

A relatively low margin of safety ratio (MOS%) for a product is usually an indic
A. Has a high contribution margin
B. Is riskier than a product with a higher margin of safety ratio

C. Is less risky than a product with a higher margin of safety ratio

D. Requires heavy fixed cost to produce or sell

E. Is losing money
Answer: C.

MC-022

Grant's Western Wear is a retailer of western hats located in Atlanta, Georgia.


aggressive in their sales efforts. Currently the economy of Atlanta is really hum
western wear stores. Also, because of the rapid growth in sales, Grant is findin

Sales
Per-unit variable costs
Invoice cost
Sales commissions
Total per unit variable costs
Total annual fixed costs
Advertising
Rent
Salaries
Total fixed costs

The annual breakeven point in unit sales is approximately:


A.
B.

C.

D.

E.
Answer: B.

MC-023

14,360
16,222
18,312
12,674
20,534

Examine this algebra.

What does this algebraic model represent?


A.
B.
C.
D.
E.

Answer: E.

MC-024

Variable cost planning


Total contribution margin
Profit planning
Contribution margin per unit
Revenue planning

Cleaning Care Inc. expects to sell 10,000 mops. Fixed costs (for the year) are e
Cleaning Care's margin of safety (MOS) in units is:

A.
B.
C.
D.

E.
Answer: D.

MC-025

7,500
8,400
7,600
8,000
7,200

Examine this diagram.

10000
10000
11
6

What does this diagram represent - choose the best answer.

Illustrates how the levels of revenues and total costs change over different lev
The Profit- Volume Graph
Illustrates how the levels of revenues and total costs change over different lev
The CVP Graph
None of the above

MC-026

Which of the following is not an underlying assumption of a conventional CVP

A.
B.

C.

D.

E.
Answer: B.

Answer:

A.
B.
C.
D.
E.
A.

MC-027
A.
B.

C.

D.

E.
Answer: B.

Learning-curve effects (ie, productivity gains with experience)


Variable costs per unit are unrelated to changes in volume
Selling price per unit is unrelated to assumed sales volume
Inputs to the profit-planning model are known with certainty
Fixed costs, in total, do not change as sales mix or total sales volume change

Cathy's Towels sells three items (which it purchases from a supplier): bath tow
and each washcloth sells for $2.70 and costs $1.10 The shop's annual fixed e
62,875
35,928
17,964
45,910
26,946

MC-028

Kelvin Co. produces and sells socks. Variable costs are budgeted at $4.40 per

The sales dollars required for Kelvin Co to make a before-tax profit of $11,000
A.

B.

C.

D.

E.
Answer: A.

MC-029

$336,000
$369,600
$352,800
$386,400
$319,200

The sales and cost data for two companies in the transportation industry are a

Sales
Variable costs
Contribution margin
Fixed costs
Operating Income
X Company's margin of safety ratio (MOS%) is calculated to be:
A.
B.
C.
D.
E.

Answer: E.

MC-030

13.86%
26.91%
24.34%
14.59%
25.63%

Grant's Western Wear is a retailer of western hats located in Atlanta, Georgia.


aggressive in their sales efforts. Currently the economy of Atlanta is really hum
western wear stores. Also, because of the rapid growth in sales, Grant is findin
Examine these two charts.
Total Revenue

$0 Err:512
$0.00 Err:512
$0.00 Err:512
$0.00 Err:512
Err:512
Err:512
Err:512
Err:512
Err:512

Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512

After breakeven point which cost strategy increases profit more rapidly.
A.
B.

C.

D.

E.
Answer: B.

MC-031

Label Corp recorded sales of $2,282,198 The company's breakeven sales poin

A.

B.

C.

D.
Answer: A.

MC-032

Cost strategy B
Cost strategy A
Cost strategy A and B have same fixed cost
No feasible answer
Cost strategy B has no fixed cost

$2,577,459
$2,713,115
$2,984,426
$2,848,770

2282198
1655000

28%
39%

Which of the following statements is true with respect to the degree of operat
A. It provides a simple way to estimate the change in total fixed cost for a given
B. For most firms, it is relatively constant in amount as sales volume changes
C. It can be calculated and used by manufacturing but not service firms

D. It is calculated as the amount of operating income (1 - t), where t = the inco


E. It is calculated as the ratio of contribution margin (CM) to operating income

Answer: E.

In measuring the variable cost per unit, CVP analysis includes:

MC-033
A.
B.
C.
D.

Answer: D.

Only variable distribution and selling costs


Only variable production costs
Only variable and semi-variable production costs
Both variable production and variable selling/distribution costs

The sales and cost data for two companies in the transportation industry are a

MC-034

Sales
Variable costs
Contribution margin
Fixed costs
Operating Income
The annual breakeven point in sales dollars for X Company is:
A.

B.

C.

D.

E.
Answer: A.

MC-035

$90,576
$81,518
$92,083
$102,315
$99,633

0.39745763
$90,575.69

The contribution margin per unit multiplied by the number of units sold is the:
A. Total contribution margin (CM)

Answer:

B.
C.
D.
E.
A.

MC-036
A.
B.

C.

D.

E.
Answer: B.

MC-037

Segment margin
Contribution margin ratio
Margin of safety (MOS)
Breakeven point

The breakeven point is:


The
The
The
The
The

sales
sales
sales
point
sales

volume at which the total contribution margin exceeds total variable


volume at which revenues equal total cost plus an operating profit o
volume at which revenues equal variable cost and profit is zero
at which revenues meet the budget target
volume at which revenues equal fixed cost and profit is zero

Staley Co.'s operating income is calculated to be:

Sales price
Variable costs
Unit contribution margin
Assume that Staley Co. is currently selling 640 computer monitors per month

What is Staley Co's margin of safety (MOS), in units, if 640 units are sold and a
A.
B.
C.
D.

E.
Answer: D.

141
492
133
148
155

0.3438
250145.433
$75,615
$0.23

$148.56

MC-038

Grant's Western Wear is a retailer of western hats located in Atlanta, Georgia.


aggressive in their sales efforts. Currently the economy of Atlanta is really hum
western wear stores. Also, because of the rapid growth in sales, Grant is findin
Sales
Per-unit variable costs
Invoice cost
Sales commissions
Total per unit variable costs
Total annual fixed costs
Advertising
Rent
Salaries
Total fixed costs
The annual breakeven point in unit sales is calculated to be:

A.
B.

C.

D.

E.
Answer: B.

MC-039
A.
B.
C.
D.
E.

Answer: E.

MC-040

13,585
15,585
16,585
14,585
17,585

$13.00

0.325
15584.61538462

The form of the income statement that is used in CVP analysis is referred to a
A flexible-budget income statement
A segment profitability report
An activity-based cost (ABC) income statement
An absorption costing income statement
A contribution income statement

EZ Carry Corp is the maker of high quality golf bags. They currently have thre
costs for the year are expected to be $2,058,723 (Note: round all decimals to
Small

Selling price per bag


Variable cost per bag

$100
$61
20

The breakeven point in units (for the year) would be:


A.
B.
C.
D.

Answer: D.

36,335
35,335
36,335
35,835

small,
small,
small,
small,

8,709
8,709
9,209
8,959

medium,
medium,
medium,
medium,

1,667
1,667
1,917
1,792

large
large
large
large

Staley Co.'s operating income is calculated to be:

MC-041

Sales price
Variable costs
Unit contribution margin
Assume that Staley Co. is currently selling 570 computer monitors per month
What is Staley Co's degree of operating leverage (DOL) at this sales volume?
A.
B.

C.

D.

E.
Answer: B.

4.929
5.082
4.980
5.031
4.878

$18,620
94620
$5.0816

For the current year, Power Cords Corp. expected to sell 43,500 industrial pow

MC-042

Power Cord Corp's margin of safety (MOS) in sales dollars is:

A.
B.
C.
D.

$186,445,283
$170,232,650
$162,126,333
$194,551,600

43500
3827
2327
1702000

166,474,500
1,500
0.3920
4,342,369


E.
Answer: C.

$145,913,700

162,132,131

Cost/volume/profit (CVP) analysis is a technique available to management to u


not a major assumption underlying CVP analysis?

MC-043

Operating efficiency and employee productivity are constant at all volume lev
The product selling price per unit is affected by changes in volume levels
In multi-product situations, the sales mix changes as volume changes
Total costs vary only with changes in sales volume
All costs incurred by a firm can be separated into their fixed and variable com

MC-044

In the current year, Becker Sofa Company expected to sell 11,600 leather sofa

A.
B.
C.

D.

E.
Answer: C.

Becker Sofa Company's margin of safety (MOS) in sales dollars is:


A.
B.

C.

D.

E.
Answer: B.

$34,550,247
$36,368,681
$41,823,983
$36,550,524
$34,732,090

11600
4470
2120
8140000

51,852,000
2,350
1
15,483,319
36,368,681

UCF Watch Corp is the maker of quality watches. They currently have three di
expected to be $1,815,000

MC-045

MickeyWatches
Selling price per bag
$89.3
Variable cost per bag
$54.9
x
The breakeven point in units (for the year) would be:

A.

2,425 MickeyWatches

7,275

7,275 MickeyWatches
B.
36,373 MickeyWatches
C.

7,275 MickeyWatches
D.

E. None of the above


Answer: C.

2,425
7,275
36,373

Framing House, Inc. produces and sells picture frames. Variable costs are expe

MC-046

The sales units required by Framing House to make a before-tax profit of $13,
A.
B.
C.
D.

E.
Answer: D.

16,366
16,032
15,364
16,700
15,698

23
15
120000
13600
133600

8
0.347826087
384100
16700

Calculating the margin of safety (MOS) measure will help a firm answer which

MC-047
A.
B.

C.

D.

E.
Answer: B.

Are we using our debt wisely?


How much revenue can we lose before we drop below the breakeven point?
How much profit will we earn?
Will we break even?
How much will profits change if sales change?

For the current year, Power Cords Corp. expected to sell 48,400 industrial pow

MC-048

Power Cords Corp's margin of safety (MOS) in units is:

A.
B.
C.
D.

47,267
40,177
54,357
44,904

48400
206522800
4267
1671
2596
0.3916100305
1893000 4833890.48474

42,540

E.
Answer: A.

MC-049
A.
B.

C.

D.

E.
Answer: B.

MC-050
A.
B.
C.
D.
E.

Answer: E.

201688909.5153

Which of the following formulas can be used to represent targeted pretax prof
B
B
B
B
B

=
=
=
=
=

A (1 + t)
A (1 - t)
(1 + t) A
A (1 - t)
FC (1 - t)

The difference between sales price per unit and variable cost per unit is the:
Breakeven point
Margin of safety (MOS)
Contribution margin ratio
Total contribution margin (CM)
Contribution margin per unit (cm)

nsportation industry are as follows:


X Company
Amount
Percent
$139,000
100.00
$81,900
58.92
$57,100
41.08
$41,600
$15,500

Y Company
Amount
Percent
$139,000
100.00
$41,600
29.93
$97,400
70.07
$81,900
$15,500

is calculated to be (rounded):
1 0.2992805755
116879.8768
$22,120

Per Unit
$460.00
$299.00
$161.00

Percent
100.00
65.00
35.00

57000

$16,380.00

37050
19950

uter monitors per month and monthly fixed costs are $77,000.

ld increase monthly sales by $57,000, the new level of operating income for Staley Co would be:

$19,230.00

alysis is TRUE?

ducts sold by the firm in question


the point of optimum profit
n a service setting
costing (ABC)

e relevant range of activity:

s in productivity

-tax profit of $50,950?


$423,559

$79,609.38

50950

to sell 13,400 leather sofas. Fixed costs for the year were expected to be $9,270,000; unit sales price w

51094199.262
9979.3357934

d costs (for the year) are expected to be $10,000, unit sales price is expected to be $11.00, and unit va

sell 24,500 telephone switches. Fixed costs for the year were expected to be $12,403,000, the unit sa

22788219.568 10385219.6
1758 7055.1763367 0.45572755
0.54427245 17444.823663
56346780.432

42300
1640000
3778
1464
2314 0.3875066173

htner and Foglighter. The data on the two lamp models are as follows:

Enlightner
520
$320.00
$210.00
$110.00

Foglighter
420
$420.00
$249.00
$171.00

940
740
459
281

Total fixed costs for the manufacture of both products are $94,000. Demand is high enough for either p

what is the breakeven point in total units? (Round intermediate calculations to 2 decimal places and fin

0.69577

nsportation industry are as follows:


X Company
Amount
Percent
$123,000
100.00
$74,400
60.49
$48,600
39.51
$37,400
$11,200

the current sales volume level is calculated to be:

inear may be analyzed linearly by considering only:

Y Company
Amount
Percent
$123,000
100.00
$37,400
30.41
$85,600
69.59
$74,400
$11,200

cated in Atlanta, Georgia. Although Grant's carries numerous styles of western hats, each hat has appr
my of Atlanta is really humming, and sales growth at Grant's has been great. However, the business is
th in sales, Grant is finding it more difficult to manage certain aspects of the business, such as restock
$34.00
$17.90
$5.20
$23.10

23500

$799,000
$420,650
$122,200
$542,850
$256,150

$22,700
$29,000
$120,600
$172,300

ould be:

erating profit changes over different levels of output/sales volume?

$83,850

to sell 11,800 leather sofas. Fixed costs for the year were expected to be $8,390,000; unit sales price w

%) is (rounded to two decimal places):


53,572,000
2320
0.51101322

16,418,362 0.69352718
37,153,638

hift some costs from fixed to variable classifications, resulting in:

deal with uncertainty regarding the inputs to a CVP (profit-planning) model?

cated in Atlanta, Georgia. Although Grant's carries numerous styles of western hats, each hat has appr
my of Atlanta is really humming, and sales growth at Grant's has been great. However, the business is
th in sales, Grant is finding it more difficult to manage certain aspects of the business, such as restock

Total Cost
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512

Total RevenuTotal Cost


Err:512
Err:512
Err:512
$0.00 Err:512
Err:512
$0.00 Err:512
Err:512
$0.00 Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512
Err:512

even point calculation:

depending on the cost structure of the organization

help a firm answer which of the following questions?

w the breakeven point?

product is usually an indication that the product:

afety ratio

cated in Atlanta, Georgia. Although Grant's carries numerous styles of western hats, each hat has appr
my of Atlanta is really humming, and sales growth at Grant's has been great. However, the business is
th in sales, Grant is finding it more difficult to manage certain aspects of the business, such as restock

$34.00
CVP Graph
$18.00
$5.20
$23.20
$22,900
$29,000
$123,300
$175,200

5000

0
5,000
10,000
15,000
20,000
25,000
30,000

$0
$170,000
$340,000
$510,000
$680,000
$850,000
$1,020,000

$0
$116,000
$232,000
$348,000
$464,000
$580,000
$696,000

$175,200
$175,200
$175,200
$175,200
$175,200
$175,200
$175,200

d costs (for the year) are expected to be $10,000, unit sales price is expected to be $11.00, and unit va

110000
5
0.45454545

22000
88000

8000

change over different levels of sales volume expressed in units.


change over different levels of sales volume expressed in units.

on of a conventional CVP analysis?

perience)

otal sales volume change

x
x
x
x

from a supplier): bath towels, hand towels, and washcloths in a 4:3:2 mix (thus, a batch of 9 towels ha
The shop's annual fixed expenses are $351,200$, and the income tax rate is 40.00% How many bath t

18.9
0.57142857
0.28571429
0.14285714

30.8
17.95
19565.45961
39130.91922

12.85
1800

re budgeted at $4.40 per pair, and fixed costs for the year are expected to total $101,000. The selling

fore-tax profit of $11,000 are:

nsportation industry are as follows:


X Company
Amount
Percent
$120,000
100.00
$72,000
60.00
$48,000
40.00
$35,700
$12,300

Y Company
Amount
Percent
$120,000
100.00
$35,700
29.75
$84,300
70.25
$72,000
$12,300

ated to be:
$48,000

0.4
$89,250
$30,750
0.25625

cated in Atlanta, Georgia. Although Grant's carries numerous styles of western hats, each hat has appr
my of Atlanta is really humming, and sales growth at Grant's has been great. However, the business is
th in sales, Grant is finding it more difficult to manage certain aspects of the business, such as restock

Total Cost

Total RevenuTotal Cost

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$0.00 Err:512
$0.00 Err:512
$0.00 Err:512
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profit more rapidly.

The company's breakeven is

ny's breakeven sales point (in dollars) is $1,655,000 and its margin of safety ratio (MOS%) at the curre

627198
27.5%
922459.016 0.4041976272
1058114.75 0.4636384547
1329426.23 0.5825201098
1193770.49 0.5230792823

ct to the degree of operating leverage (DOL)?

otal fixed cost for a given change in sales volume


sales volume changes
not service firms

(1 - t), where t = the income tax rate


M) to operating income

includes:

tion costs

nsportation industry are as follows:


X Company
Amount
Percent
$118,000
100.00
$71,100
60.25
$46,900
39.75
$36,000
$10,900

mpany is:

umber of units sold is the:

Y Company
Amount
Percent
$118,000
100.00
$36,000
30.51
$82,000
69.49
$71,100
$10,900

gin exceeds total variable costs


plus an operating profit of zero
ost and profit is zero
and profit is zero

Per Unit
$509.00
$334.00
$175.00

Percent
100.00
65.62
34.38

uter monitors per month and monthly fixed costs are $86,000.

if 640 units are sold and all costs and revenues are as budgeted? (Round intermediate calculation up t

cated in Atlanta, Georgia. Although Grant's carries numerous styles of western hats, each hat has appr
my of Atlanta is really humming, and sales growth at Grant's has been great. However, the business is
th in sales, Grant is finding it more difficult to manage certain aspects of the business, such as restock
$40.00
$20.90
$6.10
$27.00
$27,200
$34,000
$141,400
$202,600

d to be:

P analysis is referred to as:

They currently have three different lines of bags, which they sell to sporting goods and golf shops thro
ote: round all decimals to three decimal places)
Medium

Large

$154
$99
5

$256
$162
1

1
5
20
26
0.03846154 0.1923076923 0.76923077
1
$94
$55
$39
188
$3.62
$10.58
$30.00 44.192307692
1791.75196 8958.7597911 35835.0392 46585.550914

Per Unit
$452.00
$286.00
$166.00

Percent
100.00
63.27
36.73

26

2058723

570
76000

uter monitors per month and monthly fixed costs are $76,000.

OL) at this sales volume? (Round your answer to three decimal places)

sell 43,500 industrial power cords. Fixed costs were expected to total $1,702,000; unit sales price was

ollars is:

lable to management to understand better the interrelationships of several factors that combine to de

constant at all volume levels


ges in volume levels
volume changes

x
x

eir fixed and variable components

to sell 11,600 leather sofas. Fixed costs for the year were expected to be $8,140,000; unit sales price w

les dollars is:

ey currently have three different watches, which they sell to tourist shops throughout Florida. UCF Wat

UniversalWatch
$136.6
$86.6
5x

UniversalWatch

SeaWorldWatch
$228.5
$146.0
15x

36,373 SeaWorldWatch

15
0.7894736842
$89.3
$54.9

UniversalWatch
UniversalWatch
UniversalWatch

36,373 SeaWorldWatch
2,425 SeaWorldWatch
2,425 SeaWorldWatch

$34.40
$27.16
36372.745491

es. Variable costs are expected to be $15.00 per frame; fixed costs for the year are expected to total $1

a before-tax profit of $13,600 are calculated to be:

help a firm answer which of the following questions?

w the breakeven point?

sell 48,400 industrial power cords. Fixed costs were expected to total $1,893,000; unit sales price was

47267.1454

sent targeted pretax profit, B, as a function of targeted after-tax profit, A, given an effective income

able cost per unit is the:

Co would be:

0; unit sales price was budgeted at $5,120; and unit variable costs were expected to be $2,410.

$11.00, and unit variable costs are budgeted at $7.00.

403,000, the unit sales price was budgeted at $3,230, and unit variable costs were budgeted at $1,472

4232185.79
1120.21858
41179.7814

55%
43.243%
46%
39%

45%
56.7568%
54%
61%

$166,400 $176,400 $342,800


$109,200 $104,580 $213,780
$57,200
$71,820 $129,020
$94,000
0.34375 0.40714286 0.37637106
enough for either product to keep the plant operating at maximum capacity.

cimal places and final answer to the nearest whole number)

, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personn
ver, the business is very competitive, and Grant has relied on its knowledgeable and courteous staff to
ess, such as restocking of inventory and hiring and training new salespeople.

0; unit sales price was budgeted at $4,540; and unit variable costs were expected to be $2,220.

, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personn
ver, the business is very competitive, and Grant has relied on its knowledgeable and courteous staff to
ess, such as restocking of inventory and hiring and training new salespeople.

, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personn
ver, the business is very competitive, and Grant has relied on its knowledgeable and courteous staff to
ess, such as restocking of inventory and hiring and training new salespeople.

$175,200
$291,200
$407,200
$523,200
$639,200
$755,200
$871,200

-$175,200
-$121,200
-$67,200
-$13,200
$40,800
$94,800
$148,800

$11.00, and unit variable costs are budgeted at $6.00.

atch of 9 towels has 4 bath towels, 3 hand towels, and 2 washcloths). Each bath towel sells for $10.80
% How many bath towels must the firm sell at the breakeven point?

01,000. The selling price is expected to be $6.60 per pair.

, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personn
ver, the business is very competitive, and Grant has relied on its knowledgeable and courteous staff to
ess, such as restocking of inventory and hiring and training new salespeople.

MOS%) at the current sales level is 28.00% What sales are needed to increase the company's margin o

ate calculation up to nearest whole number of units)

, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personn
ver, the business is very competitive, and Grant has relied on its knowledgeable and courteous staff to
ess, such as restocking of inventory and hiring and training new salespeople.

and golf shops throughout the world EZ Carry sells a constant mix of 4 small bags for each medium-si

unit sales price was expected to be $3,827; and unit variable costs were budgeted at $2,329.

that combine to determine a firm's profit. As with many such techniques, the accountant oversimplifie

0; unit sales price was budgeted at $4,470; and unit variable costs were expected to be $2,120.

ut Florida. UCF Watch sells a constant mix of 5 MickeyWatches for each UniversalWatch and 3 Universa

3
1
0.15789474 0.05263158
$136.6
$228.5
$86.6
$146.0

19
1
454.4
287.5

$50.00
$7.89
7274.5491

$82.50
166.9
$4.34 39.3947368
1815000
2424.8497 46072.1443 46072.1443
0

expected to total $120,000. The budgeted selling price is $23.00 per frame.

unit sales price was expected to be $4,267; and unit variable costs were budgeted at $2,596.

an effective income tax rate of t?

pected to be $2,410.

s were budgeted at $1,472.

$364.68
$249,754
$685

shown below. Sales personnel receive large commissions to encourage them to be more
able and courteous staff to attract and retain customers, who otherwise might go to other
.

pected to be $2,220.

shown below. Sales personnel receive large commissions to encourage them to be more
able and courteous staff to attract and retain customers, who otherwise might go to other
.

shown below. Sales personnel receive large commissions to encourage them to be more
able and courteous staff to attract and retain customers, who otherwise might go to other
.

bath towel sells for $10.80 and costs $4.30, each hand towel sells for $5.40 and costs $2.10;

shown below. Sales personnel receive large commissions to encourage them to be more
able and courteous staff to attract and retain customers, who otherwise might go to other
.

se the company's margin of safety ratio (MOS%) to 39.00%?

shown below. Sales personnel receive large commissions to encourage them to be more
able and courteous staff to attract and retain customers, who otherwise might go to other
.

ll bags for each medium-sized bag and 5 medium bags for each large-sized bag. Total fixed

geted at $2,329.

he accountant oversimplifies the real world by making assumptions Which of the following is

pected to be $2,120.

versalWatch and 3 UniversalWatch for each SeaWorldWatch. Total fixed costs for the year are

geted at $2,596.

m to be more
ght go to other

m to be more
ght go to other

m to be more
ght go to other

0 and costs $2.10;

m to be more
ght go to other

m to be more
ght go to other

bag. Total fixed

of the following is

sts for the year are