Questions -
Q1. If sales revenue is $5,000, variable costs are $3,000 and fixed costs are $1,000, how much is the break-even revenue? (assume that the break-even point is in the relevant range)
A. not enough information
B. $1,667
C. $2,500
D. $4,000
Q2. Wallmart Store reported the following data for November: COGS was $350,000, SG&A costs were $30,000, beginning inventory was $60,000 and ending inventory was $50,000. What were the purchases of new merchandise in November?
A. $320,000
B. $340,000
C. $360,000
D. $380,000
Q3. Which of the following is a period cost:
A. Annual fixed manufacturing overhead
B. Sales commissions
C. Factory supervisor's annual bonus
D. Both A and C
Q4. In January, Delta Company sold 2,000 units of its product at a price of $20 per unit. Its COGS (cost of goods sold) for January totaled $20,000, and its SG&A (selling, general and administrative) costs totaled $16,000. If Delta is expecting to sell 2,200 units in February, how much is the expected profit for February?
A. not enough information
B. $4,400
C. $6,000
D. $8,000