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AttemptScore

20outof20points

TimeElapsed

26minutesoutof1hour

ResultsDisplayed SubmittedAnswers,CorrectAnswers

Question1

Question2

2outof2points
GallManufacturingsellsaproductfor$50perunit.Thefixedcostsare$840,000andthevariable
costsare60%ofthesellingprice.Asaresultofnewautomatedequipment,itisanticipatedthatfixed
costswillincreaseby$200,000andvariablecostswillbe50%ofthesellingprice.Thenewbreak
evenpointinunitsis:
SelectedAnswer:

41,600.

CorrectAnswer:

41,600.

2outof2points
Acompanyhastotalfixedcostsof$240,000andacontributionmarginratioof20%.Thetotalsales
necessarytobreakevenare
SelectedAnswer:

$1,200,000.

CorrectAnswer:

$1,200,000.

Question3
TwocostsatBradshawCompanyappearbelowforspecificmonthsofoperation.
MonthAmountUnitsProduced
DeliverycostsSeptember$40,00040,000
October55,00060,000
UtilitiesSeptember$84,00040,000
October126,00060,000
Whichtypeofcostsarethese?
SelectedAnswer:

Deliverycostsaremixedandutilitiesarevariable.

CorrectAnswer:

Deliverycostsaremixedandutilitiesarevariable.

Question4
Iftheactivitylevelincreases10%,totalvariablecostswill
SelectedAnswer:

increase10%.

CorrectAnswer:

increase10%.

Question5
TheequationwhichreflectsaCVPincomestatementis
SelectedAnswer:

SalesVariablecostsFixedcosts=Netincome.

CorrectAnswer:

SalesVariablecostsFixedcosts=Netincome.

Question6
Coststructure

2outof2points

2outof2points

2outof2points

2outof2points

Selected
Answer:

referstotherelativeproportionoffixedversusvariablecoststhatacompany
incurs.

CorrectAnswer:

referstotherelativeproportionoffixedversusvariablecoststhatacompany
incurs.

Question7
Thecontributionmarginratiois
SelectedAnswer:

contributionmargindividedbysales.

CorrectAnswer:

contributionmargindividedbysales.

Question8
Acompanywithahighercontributionmarginratiois

Question9

SelectedAnswer:

moresensitivetochangesinsalesrevenue.

CorrectAnswer:

moresensitivetochangesinsalesrevenue.

2outof2points

2outof2points

2outof2points
In2016,TellerCompanysold3,000unitsat$600each.Variableexpenseswere$420perunit,and
fixedexpenseswere$270,000.Thesamesellingprice,variableexpenses,andfixedexpensesare
expectedfor2017.WhatisTellersbreakevenpointinsalesdollarsfor2017?
SelectedAnswer:

$900,000

CorrectAnswer:

$900,000

Question10
Salesmixis

2outof2points

SelectedAnswer:

therelativepercentageinwhichacompanysellsitsmultipleproducts.

CorrectAnswer:

therelativepercentageinwhichacompanysellsitsmultipleproducts.

Sunday,August7,201611:30:23AMEDT

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