ACCT ch. 11 — 61-73 – Flashcards
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What was Kennedy Co.'s sales mix last year?
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D. 64% Arks, 36% Bins
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What was Kennedy Co.'s overall enterprise product's unit selling price?
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D. $94.40
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What was Kennedy Co.'s overall enterprise product's unit variable cost?
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D. $27.20
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What was Kennedy Co.'s overall enterprise product's unit contribution margin?
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A. $67.20
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Assuming that last year's fixed costs totaled $910,000, what was Kennedy Co.'s break-even point in units?
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D. 13,542 units
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Assume that Crowson Co. sold 8,000 units of Product A and 2,000 units of Product B during the past year. The unit contribution margins for Products A and B are $20 and $45, respectively. Crowson has fixed costs of $350,000. The break-even point in units is
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A. 14,000 units.
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The relative distribution of sales among the various products sold by a business is termed the
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C. sales mix.
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When a business sells more than one product at varying selling prices, the business's break-even point can be determined as long as the number of products does not exceed
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D. There is no limit.
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If a business had sales of $4,000,000, fixed costs of $1,200,000, a margin of safety of 25%, and a contribution margin ratio of 40%, what was the break-even point?
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A. $3,000,000
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If a business had sales of $4,000,000 and a margin of safety of 25%, what was the break-even point?
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B. $3,000,000
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If a business had a capacity of $10,000,000 of sales, actual sales of $6,000,000, break-even sales of $4,500,000, fixed costs of $1,800,000, and variable costs of 60% of sales, what is the margin of safety expressed as a percentage of sales?
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A. 25%
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If sales are $300,000, variable costs are 60% of sales, and operating income is $40,000, what is the operating leverage?
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A. 3,000
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The difference between the current sales revenue and the sales at the break-even point is called the
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B. margin of safety.
