Unit 3 Quiz

1. Which of the following is not a cost classification? (Points : 2) Mixed Multiple Variable Fixed 2. Which of the following is not a fixed cost? (Points : 2) Direct materials Depreciation Lease charge Property taxes 3. At the break-even point of 2,500 units, variable costs are $55,000, and fixed costs are $32,000. How much is the selling price per unit? (Points : 2) $34. 80 $9. 20 $12. 80 $22. 00 4. The relevant range of activity refers to the (Points : 2) geographical areas where the company plans to operate. activity level where all costs are curvilinear. levels of activity over which the company expects to operate. evel of activity where all costs are constant. 5. A CVP graph does not include a (Points : 2) variable cost line. fixed cost line. sales line. total cost line. 6. Which one of the following is not an assumption of CVP analysis? (Points : 2) All units produced are sold. All costs are variable costs. Sales mix remains constant. The behavior of costs and revenues are line ar within the relevant range. 7. Variable costs for Foley, Inc. are 25% of sales. Its selling price is $80 per unit. If Foley sells one unit more than break-even units, how much will profit increase? (Points : 2) $60. 00 $20. 00 $26. 66 $320. 00 8.Tiny Tots Toys has actual sales of $400,000 and a break-even point of $260,000. How much is its margin of safety ratio? (Points : 2) 35% 65% 154% 53. 8% 9. The following monthly data are available for Wackadoos, Inc. which produces only one product: Selling price per unit, $42; Unit variable expenses, $14; Total fixed expenses, $42,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June? (Points : 2) $70,000 $105,000 $63,000 $2,500 10. Hess, Inc. sells a product with a contribution margin of $12 per unit, fixed costs of $74,400, and sales for the current year of $100,000.How much is Hess's break-even point? (Points : 2) 4,600 units $25,600 6,200 units 2,133 units Time Remaining: 43. H ess, Inc. sells a product with a contribution margin of $12 per unit, fixed costs of $74,400, and sales for the current year of $100,000. How much is Hess's break-even point? (Points: 4) 4,600 units $25,600 6,200 units 2,133 units BEP = $74,400/$12 = 6,200 units 46. The following monthly data are available for Wackadoos, Inc. which produces only one product: Selling price per unit, $42; Unit variable expenses, $14; Total fixed expenses, $42,000; Actual sales for the month of June, 4,000 units.How much is the margin of safety for the company for June? (Points: 4) $70,000 $105,000 $63,000 $2,500 UCM = $42 – $14 = $28 BEP = $42,000 / $28 = 1,500 units BEP $ = 1,500 ? $42 = $63,000 Expected Sales $ = $42 ? 4,000 = $168,000 MOS = $105,000 41. Tiny Tots Toys has actual sales of $400,000 and a break-even point of $260,000. How much is its margin of safety ratio? (Points: 4) 35% 65% 154% 53. 8% Margin of Safety = $400,000 – $260,000 = $140,000 Margin of Safety Ratio = $140,000 /$400,000 = 35%