ACCT ch. 11 — 61-73 – Flashcards
13 test answers
Unlock all answers in this set
Unlock answers 13question
Assuming that last year's fixed costs totaled $910,000, what was Kennedy Co.'s break-even point in units?
answer
D. 13,542 units
Unlock the answer
question
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
answer
A. 14,000 units.
Unlock the answer
question
The relative distribution of sales among the various products sold by a business is termed the
answer
C. sales mix.
Unlock the answer
question
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
answer
D. There is no limit.
Unlock the answer
question
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?
answer
A. $3,000,000
Unlock the answer
question
If a business had sales of $4,000,000 and a margin of safety of 25%, what was the break-even point?
answer
B. $3,000,000
Unlock the answer
question
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?
answer
A. 25%
Unlock the answer
question
If sales are $300,000, variable costs are 60% of sales, and operating income is $40,000, what is the operating leverage?
answer
A. 3,000
Unlock the answer
question
The difference between the current sales revenue and the sales at the break-even point is called the
answer
B. margin of safety.
Unlock the answer
