1 Accounting As A Tool For Managers 2 Building Blocks Of Managerial Accounting 3 Cost-volume-profit Analysis 4 Job Order Costing 5 Process Costing 6 Activity-based, Variable, And Absorption Costing 7 Budgeting 8 Standard Costs And Variances 9 Responsibility Accounting And Decentralization 10 Short-term Decision Making 11 Capital Budgeting Decisions 12 Balanced Scorecard And Other Performance Measures 13 Sustainability Reporting Chapter3: Cost-volume-profit Analysis
Chapter Questions Section: Chapter Questions
Problem 1MC: The amount of a units sales price that helps to cover fixed expenses is its ____________________. A.... Problem 2MC: A companys product sells for $150 and has variable costs of $60 associated with the product. What is... Problem 3MC: A companys product sells for $150 and has variable costs of $60 associated with the product. What is... Problem 4MC: A companys contribution margin per unit is $25. It the company increases its activity level from 200... Problem 5MC: A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the... Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a... Problem 7MC: Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and... Problem 8MC: A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be... Problem 9MC: A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys... Problem 10MC: When sales price increases and all other variables are held constant, the break-even point will A.... Problem 11MC: When sales price decreases and all other variables are held constant, the break-even point will... Problem 12MC: When variable costs increase and all other variables remain unchanged, the break-even point will... Problem 13MC: When fixed costs decrease and all other variables remain unchanged, the break-even point will... Problem 14MC: When fixed costs increase and all other variables remain unchanged, the contribution margin will A.... Problem 15MC: If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin... Problem 16MC: Break-even for a multiple product firm. can be calculated by dividing total fixed costs by the... Problem 17MC: Waskowski Company sells three products (A. B. and C) with a sales mix of 3:2:1. Unit sales price are... Problem 18MC: Beaucheau Farms sells three products (E, F, and G) with a sale mix ratio of 3:1:2. Unit sales price... Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell... Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month... Problem 21MC: Macom Manufacturing has total contribution margin of $61,250 and net income of $24,500 for the month... Problem 22MC: If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month,... Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,... Problem 1Q: Define and explain contribution margin on a per unit basis. Problem 2Q: Define and explain contribution margin ratio. Problem 3Q: Explain how a contribution margin income statement can be used to determine profitability. Problem 4Q: In a cost-volume-profit analysis, explain what happens at the break-even point and why companies do... Problem 5Q: What is meant by a products contribution margin ratio and how is this ratio useful in planning... Problem 6Q: Explain how a manager can use CVP analysis to make decisions regarding changes in operations or... Problem 7Q: After conducting a CVP analysis, most businesses will then recreate a revised or projected income... Problem 8Q: Explain how for is possible for costs to change without changing the break-even point. Problem 9Q: Explain what a sales mix is and how changes in the sales mix affect the break-even point. Problem 10Q: Explain how break-even analysis for a multi-product company differs from a company selling a single... Problem 11Q: Explain margin of safety and why it is an important measurement for managers. Problem 12Q: Define operating leverage and explain its importance to a company and how it relates to risk. Problem 1EA: Calculate the per-unit contribution margin of a product that has a sale price of $200 if the... Problem 2EA: Calculate the per-unit contribution margin of a product that has a sale price of $400 if the... Problem 3EA: A product has a sales price of $150 and a per-unit contribution margin of $50. What is the... Problem 4EA: A product has a sales price of $250 and a per-unit contribution margin of $75. What is the... Problem 5EA: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of... Problem 6EA: Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of... Problem 7EA: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per... Problem 8EA: Marchete Company produces a single product. They have recently received the results of a market... Problem 9EA: Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The... Problem 10EA: Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable... Problem 11EA: Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable... Problem 12EA: Use the information from the previous exercises involving Salvador Manufacturing to determine their... Problem 13EA: Company A has current sales of $10,000,000 and a 45% contribution margin. Its fixed costs are... Problem 14EA: Marshall s target margin of safety be in units and dollars if they required a $14,000 margin of... Problem 1EB: Calculate the per-unit contribution margin of a product that has a sale price of $150 if the... Problem 2EB: Calculate the per-unit contribution margin of a product that has a sale price of $350 if the... Problem 3EB: A product has a sales price of $175 and a per-unit contribution margin of $75. What is the... Problem 4EB: A product has a sales price of $90 and a per-unit contribution margin of $30. What is the... Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90.... Problem 6EB: Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit... Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are... Problem 8EB: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an... Problem 9EB: Baghdad Company produces a single product. They have recently received the result of a market survey... Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web... Problem 11EB: Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost... Problem 12EB: Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost... Problem 13EB: Use the information from the previous exercises involving JJ Manufacturing to determine their... Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are... Problem 15EB: Best Wholesale recently calculated their break-even point for their Midwest operations. The national... Problem 1PA: A company sells small motors as a component part to automobiles. The Model 101 motor sells for $850... Problem 2PA: A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for... Problem 3PA: Fill in the missing amounts for the four companies. Each case is independent of the others. Assume... Problem 4PA: Markham Farms reports the following contribution margin income statement for the month of August.... Problem 5PA: Kylies Cookies is considering the purchase of a larger oven that will cost $2,200 and will increase... Problem 6PA: Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit... Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model... Problem 8PA: Jakarta Company is a service firm with current service revenue of $400,000 and a 40% contribution... Problem 1PB: A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable... Problem 2PB: A company manufactures and sells blades that are used in riding lawnmowers. The 18-inch blade sells... Problem 3PB: Fill in the missing amounts for the four companies. Each case is independent of the others. Assume... Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are... Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May.... Problem 6PB: Karens Quilts is considering the purchase of a new Long-arm Quilt Machine that will cost $17,500 and... Problem 7PB: Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit... Problem 8PB: Tim-Buck-Il rents jet skis at a beach resort. There are three models available to rent: Junior,... Problem 9PB: Fire Company is a service firm with current service revenue of $900,000 and a 40% contribution... Problem 1TP: Mariana Manufacturing and Bellow Brothers compete in the same industry and in all respects their... Problem 2TP: Roald is the sales manager for a small regional manufacturing firm you own. You have asked him to... Problem 3TP: As a manager, you have to choose between two options for new production equipment. Machine A will... Problem 4TP: Coutures Creations is considering offering Joe, an hourly employee, the opportunity to become a... Problem 2PB: A company manufactures and sells blades that are used in riding lawnmowers. The 18-inch blade sells...
Related questions
A business operated at 100% of capacity during its first month, with the following results:
Sales (104 units)
$520,000
Production costs (130 units):
Direct materials
$65,000
Direct labor
16,250
Variable factory overhead
29,250
Fixed factory overhead
26,000
136,500
Operating expenses:
Variable operating expenses
$6,140
Fixed operating expenses
3,900
10,040
The amount of contribution margin that would be reported on the variable costing income statement is
a.$421,560
b.$519,870
c.$425,460
d.$509,960
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
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