An insurance company claims that for x thousand policies, its monthly revenue in dollars is given by R(x)=225x and its monthly cost in dollars is given by C(x)=180x+16,200

A) find the break even point

B) grap the revenue and cost equations on the same axes

C) from the graph estimate the revenue and cost when x=180

In 2018, X Company's revenue was $198,000, its total variable costs were $122,760, and its fixed costs were $92,400. In 2019, the relationship between revenue and variable costs will not change, but fixed costs will decrease by $14,784. Assuming a tax rate of 35%, what will revenue have to be in order for X Company to earn $41,600 after taxes in 2019?

6. Make revenue forecast for Pacific Shoes for 2020 based on historical data if the company generated the following revenues for the last five years. Calculate the forecast error, draw a graph with the actual and forecasted revenue by year, and show the forecast error on the graph.

Year.                      2015 2016 2017 2018 2019
Revenue (Million $) 23 27    27        32.     30

For a given incremental increase in revenue from each of the following sources of growth, which would generally create the most shareholder value?

a. Reducing costs.

b. Acquiring businesses.

c. Expanding an existing market.

d. Introducing new products to market.

A retail sales tax on remote sellers will produce as much revenue as a use tax on in-state purchasers.

T/F

Revenue generally should be recognized

Question 1
Which of the following is true at breakeven point?
a) Sales revenue = variable cost
b) Profit = fixed cost + variable cost
c) Sales revenue = total cost – variable cost
d) Contribution = fixed cost
Question 2
An increase in fixed costs will result in which of the following:
a) A decrease in the contribution to sales ratio
b) A decrease in the contribution per unit
c) An increase in the breakeven point sales
d) An increase in the margin of safety
Question 3
Where opening inventory of 50 units of finished goods are valued at GHS10 each and the average
unit cost of 500 units produced during the period is GHS8.90, which method of inventory valuation
gives a closing inventory value of GHS9.00 per unit?
a) FIFO
b) Weighted average
c) Absorption cost based on normal activity
d) Marginal cost
Question 4
Which of the following is true when sales units remain constant each month but production units
fluctuate?
a) Profit reported each month will always fluctuate in proportion to units produced
b) Absorption cost inventory valuation will lead to a higher profit being reported than that
where marginal cost inventory valuation is used where sales exceed production
c) Marginal cost inventory valuation will give a higher profit than absorption cost inventory
valuation where sales exceed production
d) Marginal cost inventory valuation will result in the same profit being reported each month
Question 5
For performance reporting, it is best to compare actual costs with budgeted costs using:
a) Flexible budgets
b) Static budgets
c) Master budgets
d) Short-term budgets