1. Fixed costs are $1,500,000 and the contribution margin per unit is $150. What is the break-even point?
a. 10,000 units' b. $10,000,000 c. 3,750 units d. $3,750,000
2. Borehole's Company had actual sales of $800,000 when break-even sales were $600,000. What is the margin of safety ratio?
a. 75% b. 33% c. 67% d. 25%
3. How much sales are required to earn a target income of $80,000 if total fixed costs are $100,000 and the contribution margin ratio is 40%?
a. $300,000 b. $450,000 c. $200,000 d. $330,000
4. Clark Company had a contribution margin of $500,000 and a contribution margin ratio of 40%, total variable costs must have been
a. $200,000.00 b. $300,000.00 c. $1,250,000.00 d. $750,000.00
5. Garland's Company's cost of goods sold is $350,000 variable and $200,000 fixed. The company's selling and administrative expenses are $250,000 variable and $300,000 fixed. If the company's sales are $1,400,000, what is its contribution margin?
a. $300,000 b. $850,000 c. $800,000 d. $900,000
6. Moschino Company is planning to sell 400,000 hammers for $1.50 per unit. The contribution margin ratio is 20%. If Dolce will break even at this level of sales, what are the fixed costs?
a. $280,000 b. $120,000 c. $400,000 d. $480,000
7. Johnson Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?
a. 30% b. 60% c. 40% d. 70%
8. In 2008, Norris sold 3,000 units at $500 each. Variable expenses were $350 per unit, and fixed expenses were $200,000. The same selling price, variable expenses, and fixed expenses are expected for 2009. What is Norris's break-even point in units for 2009?
a. 3,000 b. 1,333 c. 4,285 d. 6,667
9. Gautier's CVP income statement included sales of 2,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $44,000. Contribution margin is:
a. $200,000.00 b. $120,000.00 c. $36,000.00 d. $80,000.00
10. Reese Company requires sales of $2,000,000 to cover its fixed costs of $700,000 and to earn net income of $500,000. What percent are variable costs of sales?
a. 25% b. 35% c. 40% d. 60%
Complete papare in attachment
Download:- RelevantCost-Ratios Analysis.doc