3.4 Break Even Point Analysis Multiple choice. Indicate on the ANSWER SHEET the letter and the amount of the correct answer. Given: Based on 100,000 units of production, variable cost rate is P2 per unit and fixed cost is P20,000. Q34 How much must be the variable cost rate at 80,000 and 125,000 units of production? a) P2.50 and P1.60, respectively c)P2.00 for both e) P3.00 and P2.50 b) P2.75 and P1.76, respectively d) P2.00 and P1.60 respectively d) None of the above Q35. How much must be the fixed cost rate per unit at 80,000 and 125,000 units of production? a) P.25 & P.16, respectively b) P.20 for both e). P 60 and P30 respectively c) P.16 & P.20, respectively d) P25 & P 30 respectively f) None of the above

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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3.4 Break Even Point Analysis
Multiple choice. Indicate on the ANSWER SHEET the letter and the amount of the correct answer.
Given: Based on 100,000 units of production, variable cost rate is P2 per unit and fixed cost is P20,000.
Q34 How much must be the variable cost rate at 80,000 and 125,000 units of production?
a) P2.50 and P1.60, respectively c)P2.00 for both
e) P3.00 and P2.50
b) P2.75 and P1.76, respectively
d) P2.00 and P1.60 respectively d) None of the above
Q35. How much must be the fixed cost rate per unit at 80,000 and 125,000 units of production?
a) P.25 & P.16, respectively c) P.16 & P.20, respectively
b) P.20 for both
d) P25 & P 30 respectively
e). P 60 and P30 respectively
f) None of the above
Q36. What do the areas/lines (a-e-b), (b-f-c), (f-e-g) and (c) refer to in Graph 1?
(a-e-b)
(a) Loss area
(b) Profit area
3.6
(b-f-c)
Variable cost
Variable cost
Fixed cost
a) P30
b) P20
(c) Loss area
(d) None of the above
Q37. To what may the areas (m-o-n), (n-o-x) and (t-p-o-x) refer in graph 2?
(m-o-n)
(a) Total cost
(b) Variable cost
(c) Contribution margin
(d) None of the above
(f-e-g)
Profit area
Loss area
Profit area
(n-o-x)
Variable cost
Total cost
Variable cost
Graph 1
3.5 Q38. How much must be the variable cost per unit based on the following data?
Breakeven point
Unit selling price
Fixed cost.
700 units
P 55
P21,000
c) P25
Graph 2
d) P22.50
(fc)
Fixed cost
Fixed cost
Variable cost
(t-p-o-x)
Contribution margin
Contribution margin
Total cost
e) P27.50
Q39. How much are the total fixed cost and the variable cost per unit?
a) P30,000 and P40, respectively.
b) P150,000 and P40, respectively
d) None of the above
Breakeven point sales figure is P150,000 and contribution margin percentage is 20% based on
unit selling price of P50.
c) P120,000 and P20, respectively
d) None of the above
Q40. How much must be the margin of safety and net income based on sales of P200,000?
a) P50,000 and P40,000, respectively. c) P160,000 and P40,000, respectively.
b) P50,000 and P10,000, respectively. d) None of the above
Q41. A plant expansion is expected to increase fixed costs by P35,000. How much should be the
breakeven point peso sales after the plant expansion?
a) P185,000
b)P175,000
c) P325,000
d) Answer not given
Q42. If the unit selling price were to be raised to P60, how much should be the breakeven point sales?
a) P140,000
c) P100,000
d) None of the above
b)P90,000
Transcribed Image Text:3.4 Break Even Point Analysis Multiple choice. Indicate on the ANSWER SHEET the letter and the amount of the correct answer. Given: Based on 100,000 units of production, variable cost rate is P2 per unit and fixed cost is P20,000. Q34 How much must be the variable cost rate at 80,000 and 125,000 units of production? a) P2.50 and P1.60, respectively c)P2.00 for both e) P3.00 and P2.50 b) P2.75 and P1.76, respectively d) P2.00 and P1.60 respectively d) None of the above Q35. How much must be the fixed cost rate per unit at 80,000 and 125,000 units of production? a) P.25 & P.16, respectively c) P.16 & P.20, respectively b) P.20 for both d) P25 & P 30 respectively e). P 60 and P30 respectively f) None of the above Q36. What do the areas/lines (a-e-b), (b-f-c), (f-e-g) and (c) refer to in Graph 1? (a-e-b) (a) Loss area (b) Profit area 3.6 (b-f-c) Variable cost Variable cost Fixed cost a) P30 b) P20 (c) Loss area (d) None of the above Q37. To what may the areas (m-o-n), (n-o-x) and (t-p-o-x) refer in graph 2? (m-o-n) (a) Total cost (b) Variable cost (c) Contribution margin (d) None of the above (f-e-g) Profit area Loss area Profit area (n-o-x) Variable cost Total cost Variable cost Graph 1 3.5 Q38. How much must be the variable cost per unit based on the following data? Breakeven point Unit selling price Fixed cost. 700 units P 55 P21,000 c) P25 Graph 2 d) P22.50 (fc) Fixed cost Fixed cost Variable cost (t-p-o-x) Contribution margin Contribution margin Total cost e) P27.50 Q39. How much are the total fixed cost and the variable cost per unit? a) P30,000 and P40, respectively. b) P150,000 and P40, respectively d) None of the above Breakeven point sales figure is P150,000 and contribution margin percentage is 20% based on unit selling price of P50. c) P120,000 and P20, respectively d) None of the above Q40. How much must be the margin of safety and net income based on sales of P200,000? a) P50,000 and P40,000, respectively. c) P160,000 and P40,000, respectively. b) P50,000 and P10,000, respectively. d) None of the above Q41. A plant expansion is expected to increase fixed costs by P35,000. How much should be the breakeven point peso sales after the plant expansion? a) P185,000 b)P175,000 c) P325,000 d) Answer not given Q42. If the unit selling price were to be raised to P60, how much should be the breakeven point sales? a) P140,000 c) P100,000 d) None of the above b)P90,000
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