Question

Which of the following is not an example of a cost that varies in total as the number of units produced changes?

a.Electricity per KWH to operate factory equipment

b.Supervisor salary

c.Wages of assembly worker

d.Direct materials cost

Which of the following is true when using the concept of contribution margin in managerial decision making?

a.Contribution margin is rarely useful for providing insight into the profit potential of a company.

b.The contribution margin ratio is most useful when the increase or decrease in sales volume is measured in sales dollars.

c.The unit contribution margin is most useful when the increase or decrease in sales volume is measured in sales dollars.

d.The contribution margin ratio is not helpful in developing business strategies.

Total direct materials costs are $127,500, fixed costs are $75,000, and units produced are 15,000. What is the direct materials cost per unit?

a.$8.50

b.$3.50

c.$5.00

d.$13.50

Beachside Co. sells two products: Skis and Snorkels. Last year, Beachside sold 12,600 units of Skis and 23,400 units of Snorkels. Related data are as follows:

Product	Unit Selling Price		Unit Variable Cost		Unit Contribution Margin
Skis	$120		$80		$40
Snorkels	80		60		20

What was Beachside Co.'s sales mix last year?

a.30% Skis; 70% Snorkels

b.60% Skis; 40% Snorkels

c.35% Skis; 65% Snorkels

d.12% Skis; 28% Snorkels

The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents the

a.maximum possible operating loss.

b.total fixed costs.

c.point where total sales equal total costs.

d.maximum possible operating income.

Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

a.Direct labor

b.Units of production depreciation on factory equipment

c.Direct materials

d.Factory rent

Target profit

a.is when sales and costs are exactly equal.

b.equals differential costs.

c.can be calculated by modifying the break-even equation.

d.cannot be calculated in cost-volume-profit analysis.

in a service company, the unit of analysis can influence whether costs are defined as

a.selling or administrative.

b.product or period.

__________ is a measure of the relative mix of a business's variable costs and fixed costs, computed as contribution margin divided by operating income.

a.Sales mix

b.Margin of safety

c.Operating leverage

d.Break-even point

The break-even point for a college would likely be measured in number of

a.student credit hours.

b.full-time students.

c.courses offered.

d.part-time students.

If fixed costs are $400,000 and the unit contribution margin is $20, how many units must be sold in order to realize an operating income of $250,000?

a.32,500

b.20,000

c.7,500

d.45,000

Which of the following conditions would cause the break-even point to decrease?

a.Total fixed costs decrease

b.Total fixed costs increase

c.Unit variable cost increases

d.Unit selling price decreases

c.fixed or variable.

d.short-term or long-term.

Answer 1

Which of the following is not an example of a cost that varies in total as the number of units produced changes?

b.Supervisor salary is the correct answer . It is a fixed ammount since it is salary . All other costs varies with the number of units produced.

Which of the following is true when using the concept of contribution margin in managerial decision making?

b.The contribution margin ratio is most useful when the increase or decrease in sales volume is measured in sales dollars.

This is the correct answer as contribution margin ratio = contribution margin / sales dollars

Total direct materials costs are $127,500, fixed costs are $75,000, and units produced are 15,000. What is the direct materials cost per unit?

direct materials cost per unit = $127,500 / 15000 = $ 8.5 per unit ( option A )

Beachside Co. sells two products: Skis and Snorkels. Last year, Beachside sold 12,600 units of Skis and 23,400 units of Snorkels. Related data are as follows:

What was Beachside Co.'s sales mix last year?

Skis 12600 / ( 12600 + 23400 ) : Snorkels 23400 / ( 12600 + 23400 )

Skis 35% : Snorkels 65% ( option C )

Note :- AN expert answerer is reqd. to answer one independent question or 4 MCQs in a single post.