1. DuChien Corporation recently produced and sold 100,000 units. Fixed costs at this level of activity amounted to $50,000; variable costs were $100,000. How much cost would the company anticipate if during the next period it produced and sold 102,000 units?
a. $150,000. $151,000. $152,000. $153,000. Some other amount not listed above.
2. The difference between budgeted sales revenue and break-even sales revenue is the:
a. contribution margin. contribution-margin ratio. safety margin. target net profit. operating leverage.
3. At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's break-even point in units is:
a. 7,027 (rounded). 8,667 (rounded). 9,286 (rounded). 7,429 (rounded). an amount other than those above.
At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's break-even point in units is:
Selling price = 1,000,000/20,000 = 50
VC per unit = 300,000/20,000 = 15
Contribution margin per unit = 50 - 15 = 35
BEP = 260,000/35 = 7428.57 (rounding off 7,429)
4. The contribution-margin ratio is:
a. the difference between the selling price and the variable cost per unit. fixed cost per unit divided by variable cost per unit. variable cost per unit divided by the selling price. unit contribution margin divided by the selling price. unit contribution margin divided by fixed cost per unit.
5. Which of the following methods of cost estimation relies on only two data points?
a. Least-squares regression. The high-low method. The visual-fit method. Account analysis. Multiple
