1) Givenchy Company sells 100,000 wrenches for $12.00 per unit. Fixed costs are $350,000 and net income is $250,000. What should be reported as variable expenses in the CVP income statement?
A. $950,000
B. $600,000
C. $850,000
D. $540,000
2) Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $3,330,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. Reference: Ref 6-2 The break-even point in dollars is
A. $8,325,000.
B. $9,000,000.
C. $7,744,186.
D. $1,232,100.
3) Konerko Company sells two types of computer chips. The sales mix is 30% (Q-Chip) and 70% (Q-Chip Plus). Q-Chip has variable costs per unit of $36 and a selling price of $60. Q-Chip Plus has variable costs per unit of $42 and a selling price of $78. The weighted-average unit contribution margin for Konerko is
A. $32.
B. $60.
C. $30.
D. $28.
4)How much sales are required to earn a target income of $120,000 if total fixed costs are $150,000 and the contribution margin ratio is 40%?
A. $300,000
B. $450,000
C. $675,000
D. $495,000
5) Richert Company's activity for the first three months of 2011 are as follows: Machine Costs Electrical Costs Janurary - 2,100 $4,800 February - 2,600 $5,800 March - 2,900 $6,400 Using the high-low method, how much is the cost per machine hour?
A. $1.78
B. $2.26
C. $2.00
D. $3.00