Managerial Accounting Quantitative Analysis Quiz

Total points 5

1.
Question 1
Olive Corporation has the following financial perspective of profitability for the current month:

Glenn, a manager at Olive Corp., has decided to adopt a managerial perspective of profitability.

Using the provided information, which of the following statements are true about the managerial
perspective? (Check all that apply.)

1 point

Contribution margin will be $7,000

Profit will be $7,000
Contribution margin will be $12,000
Contribution margin will be $13,000
2.
Question 2
Which of the following are true statements regarding the development of the break-even point
formula? (Check all that apply.)

1 point

Fixed costs are calculated on a per-unit basis.

Contribution margin is reflected in the equation as a total.
Revenues and variable costs are reflected in the equation as a total.
Profit is assumed to be zero.
3.
Question 3
John Company has the following information related to its manufacturing and selling of desk lamps.

What is John Company's break-even point for desk lamps?

1 point

600,000 lamps
400,000 lamps
300,000 lamps
200,000 lamps
4.
Question 4
Beloit Corporation has the following information related to its manufacturing and selling of computer
back-up hard drives.

Analysts compute the break-even point using the above information, and conclude that production
capacity and estimated sales can reach that point.

However, a few days later, the analyst learns that revenues will decrease by 5%.

What is the effect of this change on the original break-even point?

1 point

An increase of 5%
 An increase of 370 drives
A decrease of 370 drives
An increase of 435 drives
A decrease of 435 drives
5.
Question 5
James Company has the following information related to its manufacturing and selling of staplers.

Which of the following are true regarding the assumptions of James Company’s cost-volume-profit
analysis? (Check all that apply.)

1 point

James Company offers discounts to the $6 selling price if the break-even point exceeds demnd.
If variable costs change, direct labor costs will be half of direct materials costs.
Demand will be sufficient to warrant an average price of $6 per unit.
Fixed manufacturing overhead of $20,000 is sufficient to achieve the break-even volume.
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