119. If fixed costs are $600,000 and the unit contribution margin is $40, what is the break-even point if fixed
costs are increased by $90,000?
120. If fixed costs are $561,000 and the unit contribution margin is $8.00, what is the break-even point in units
if variable costs are decreased by $.50 a unit?
121. If variable costs per unit increased because of an increase in hourly wage rates, the break-even point
would:
122. If variable costs per unit decreased because of a decrease in utility rates, the break-even point would:
123. If fixed costs increased and variable costs per unit decreased, the break-even point would:
124. Which of the following conditions would cause the break-even point to decrease?
125. Which of the following conditions would cause the break-even point to increase?
126. Which of the following conditions would cause the break-even point to increase?
127. Calzone Co. has budgeted salary increases to factory supervisors totaling 8%. If selling prices and all other
cost relationships are held constant, next year’s break-even point:
128. Flying Cloud Co. has the following operating data for its manufacturing operations:
Unit selling price
$ 250
Unit variable cost
100
Total fixed costs
$840,000
The company has decided to increase the wages of hourly workers which will increase the unit variable cost by 10%. Increases in the salaries of
factory supervisors and property taxes for the factory will increase fixed costs by 4%. If sales prices are held constant, the next break-even point for
Flying Cloud Co. will be:
129. If fixed costs are $850,000 and variable costs are 60% of sales, what is the break-even point (dollars)?
130. If fixed costs are $256,000, the unit selling price is $36, and the unit variable costs are $20, what is the
break-even sales (units)?
131. If fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130, what is the
amount of sales required to realize an operating income of $200,000?
132. If fixed costs are $490,000, the unit selling price is $35, and the unit variable costs are $20, what is the
break-even sales (units) if fixed costs are reduced by $40,000?
133. If fixed costs are $400,000, the unit selling price is $25, and the unit variable costs are $15, what is the
break-even sales (units) if the variable costs are increased by $2?
134. If fixed costs are $240,000, the unit selling price is $32, and the unit variable costs are $20, what are the
old and new break-even sales (units) if the unit selling price increases by $4?
135. When the fixed costs are $120,000 and the contribution margin is $30, the break-even point is
136. If fixed costs are $46,800, the unit selling price is $42, and the unit variable costs are $24, what is the
break-even sales (units)?
137. If fixed costs are $46,800, the unit selling price is $42, and the unit variable costs are $24, what is the
break-even sales (unit ) if the variable costs are decreased by $2?
138. The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents:
139. The point where the profit line intersects the horizontal axis on the profit-volume chart represents:
140. With the aid of computer software, managers can vary assumptions regarding selling prices, costs, and
volume and can immediately see the effects of each change on the break-even point and profit. This is called:
141. In a cost-volume-profit chart, the
142. The relative distribution of sales among the various products sold by a business is termed the:
143. When a business sells more than one product at varying selling prices, the business’s break-even point can
be determined as long as the number of products does not exceed:
144. Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units
of Bins. Related data are:
Product
Unit Selling
Price
Unit Variable
Cost
Unit Contribution
Margin
Arks
$120
$80
$40
Bins
80
60
20
What was Carter Co.’s sales mix last year?
145. Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units
of Bins. Related data are:
Product
Unit Selling
Price
Unit Variable
Cost
Unit Contribution
Margin
Arks
$120
$80
$40
Bins
80
60
20
What was Carter Co.’s weighted average unit selling price?
146. Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units
of Bins. Related data are:
Product
Unit Selling
Price
Unit Variable
Cost
Unit Contribution
Margin
Arks
$120
$80
$40
Bins
80
60
20
What was Carter Co.’s weighted average variable cost?
147. Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units
of Bins. Related data are:
Product
Unit Selling
Price
Unit Variable
Cost
Unit Contribution
Margin
Arks
$120
$80
$40
Bins
80
60
20
What was Carter Co.’s weighted average unit contribution margin?
148. Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units
of Bins. Related data are:
Product
Unit Selling
Price
Unit Variable
Cost
Unit Contribution
Margin
Arks
$120
$80
$40
Bins
80
60
20
Assuming that last year’s fixed costs totaled $960,000, what was Carter Co.’s break-even point in units?
149. If a business had sales of $4,000,000 and a margin of safety of 25%, the break-even point was:
150. Forde Co. has an operating leverage of 4. Sales are expected to increase by 12% next year. Operating
income is:
151. If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the
operating leverage?
152. The difference between the current sales revenue and the sales at the break-even point is called the:
153. Cost-volume-profit analysis cannot be used if which of the following occurs?
154. Assume that Corn Co. sold 8,000 units of Product A and 2,000 units of Product B during the past year. The
unit contribution margins for Products A and B are $30 and $60 respectively. Corn has fixed costs of $378,000.
The break-even point in units is:
D. 10,500 units
155. If sales are $500,000, variable costs are 75% of sales, and operating income is $40,000, what is the
operating leverage?
156. The Rocky Company reports the following data.
Sales
Variable costs
Fixed costs
Rocky Company’s operating leverage is:
157. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s.
Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110.00
$70.00
$40.00
Y
70.00
50.00
$20.00
What was Rusty Co.’s sales mix last year?
158. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s.
Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110.00
$70.00
$40.00
Y
70.00
50.00
$20.00
What was Rusty Co.’s weighted average unit selling price?
159. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s.
Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110.00
$70.00
$40.00
Y
70.00
50.00
$20.00
What was Rusty Co.’s weighted average unit variable cost?
160. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s.
Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110.00
$70.00
$40.00
Y
70.00
50.00
$20.00
What was Rusty Co.’s weighted average unit contribution margin?
161. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s.
Related data are:
Unit Selling Price
Unit Variable
Unit contribution
Product
Price
Cost
Margin
X
$110.00
$70.00
$40.00
Y
70.00
50.00
$20.00
Assuming that last year’s fixed costs totaled $675,000. What was Rusty Co.’s break-even point in units?
162. If sales are $400,000, variable costs are 75% of sales, and operating income is $50,000, what is the
operating leverage?
163. Which of the following is not an assumption underlying cost-volume-profit analysis?
164. When units manufactured exceed units sold:
165. Harold Corporation just started business in January 2012. They had no beginning inventories. During 2012
they manufactured 12,000 units of product, and sold 10,000 units. The selling price of each unit was $20.
Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $2 per unit.
Fixed manufacturing costs were $24,000 and fixed selling and administrative costs were $6,000.
What would be the Harold Corporations net income for 2012 using absorption costing?
166. Harold Corporation just started business in January 2012. They had no beginning inventories. During 2012
they manufactured 12,000 units of product, and sold 10,000 units. The selling price of each unit was $20.
Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $2 per unit.
Fixed manufacturing costs were $24,000 and fixed selling and administrative costs were $6,000.
What would be the Harold Corporations Net income for 2012 using variable costing?
167. Harold Corporation just started business in January 2012. They had no beginning inventories. During 2012
they manufactured 12,000 units of product, and sold 10,000 units. The selling price of each unit was $20.
Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $2 per unit.
Fixed manufacturing costs were $24,000 and fixed selling and administrative costs were $6,000.
What would be the difference in Harold Corporation’s Net income for 2012 if they used variable costing
instead of absorption costing?
168. Given the following cost data, what type of cost is shown?
Total Cost
# of units
$500
1
$1,000
2
$1,500
3
$2,000
4
169. Given the following cost data, what type of cost is shown?
Cost per unit
# of units
$5,000
1
$2,500
2
$1,667
3
$1,250
4
170. Given the following cost data, what type of cost is shown?
Total Cost
# of units
$3,500
1
$4,000
2
$4,500
3
$5,000
4
171. The manufacturing cost of Mocha Industries for three months of the year are provided below:
Total Cost
Production
April
$ 63,100
1,100 Units
May
80,920
1,800
June
100,900
2,600
Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed costs.
172. The manufacturing cost of Carrie Industries for the first three months of the year are provided below:
Total Cost
Production
January
$ 93,300
2,300 Units
February
115,500
3,100
March
79,500
1,900
Using the high-low method, determine the (a) variable cost per unit, and (b) the total fixed cost.
173. Carmelita Company sells 40,000 units at $18 per unit. Fixed costs are $62,000 and income from operations
is $258,000. Determine the (a) variable cost per unit, (b) unit contribution margin, and (c) contribution margin
ratio .
Variable costs
400,000
(40,000 units ´ $10)
Contribution margin
320,000
(40,000 units ´ $8)
Fixed costs
62,000
Income from operations
$258,000
174. Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and loss from
operations is ($50,000). Determine the (a) unit contribution margin (b) contribution margin ratio, and (c) fixed
costs per unit at production of 25,000 units.
175. Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $20 per unit, while fixed costs
are $85,000. Determine the (a) break-even point in sales units, and (b) break-even point in sales units if the
selling price increased to $80 per unit. Round your answer to the nearest whole number.
176. Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed costs are
$75,000. Determine the (a) break-even point in sales units, and (b) break-even point in sales units if the selling
price increased to $100 per unit.
177. The Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is $60
per unit, and fixed costs are $270,000. Determine the (a) unit sales price, and (b) break-even points in sales
units if the company desires a target profit of $36,000.
178. The Waterfall Company sells a product for $150 per unit. The variable cost is $80 per unit, and fixed costs
are $270,000. Determine the (a) break-even point in sales units, and (b) break-even points in sales units if the
company desires a target profit of $36,000. Round your answer to the nearest whole number.
179. Bobby Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and
contribution margin per unit for the company’s two products are provided below.
Product
Selling Price per unit
Variable Cost per unit
Contribution Margin
per unit
X
$180
$100
$80
Y
$100
$60
$40
The sales mix for product X and Y is 60% and 40% respectively. Determine the break-even point in units of X and Y.