2024 – Question 1 Your friend remarked A company will never drop a product from

Question 1. 1. A company makes a single product that it sells for $16 per unit. Fixed costs are $76,800 per month and the product has a contribution margin ratio of 40%. If the company’s actual sales are $224,000, its margin of safety is: (Points : 2)

Question 2. 2. Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single product.

If the company sells 8,200 units, its total contribution margin should be closest to: (Points : 2)

Question 3. 3. Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June.

If the company sells 9,200 units, its net operating income should be closest to: (Points : 2)

Question 4. 4. Holt Company’s variable expenses are 70% of sales. At a $300,000 sales level, the degree of operating leverage is 10. If sales increase by $60,000, the degree of operating leverage will be: (Points : 2)

Question 5. 5. ABC Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. ABC expects to produce and sell 60,000 units at a price of $20 per unit. How much is the break-even point in units? (Points : 2)

Question 6. 6. Hartl Corporation is a single product firm with the following selling price and cost structure for next year:

How many units will Hartl have to sell next year in order to break-even? (Points : 2)

Question 7. 7. Wenstrom Corporation produces and sells a single product. Data concerning that product appear below:

The break-even in monthly dollar sales is closest to: (Points : 2)

Question 8. 8. Gayne Corporation’s contribution margin ratio is 12% and its fixed monthly expenses are $84,000. If the company’s sales for a month are $738,000, what is the best estimate of the company’s net operating income? Assume that the fixed monthly expenses do not change. (Points : 2)

Question 9. 9. Jilk Inc.’s contribution margin ratio is 58% and its fixed monthly expenses are $36,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company’s net operating income in a month when sales are $103,000? (Points : 2)

Question 10. 10. Rambles Toyland makes a product that sells for $70 per unit and has $45 per unit in variable costs. Annual fixed costs are $24,000. How many units must be sold to earn a profit of $12,000? (Points : 2)

Question 11. 11. Wimpy Inc. produces and sells a single product. The selling price of the product is $150.00 per unit and its variable cost is $58.50 per unit. The fixed expense is $366,915 per month.
The break-even in monthly dollar sales is closest to: (Points : 2)

Question 12. 12. Logsdon Corporation produces and sells a single product whose contribution margin ratio is 63%. The company’s monthly fixed expense is $720,720 and the company’s monthly target profit is $28,000. The dollar sales to attain that target profit is closest to: (Points : 2)

Question 13. 13. Shun Corporation manufactures and sells a hand held calculator. The following information relates to Shun’s operations for last year:

What is Shun’s unit product cost under absorption costing for last year? (Points : 2)

Question 14. 14. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

What is the unit product cost for the month under absorption costing? (Points : 2)

Question 15. 15. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

What is the unit product cost for the month under variable costing? (Points : 2)

Question 16. 16. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

The total contribution margin for the month under the variable costing approach is: (Points : 2)

Question 17. 17. Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations:

There were no beginning or ending inventories. The unit product cost under absorption costing was: (Points : 2)