FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- 1. What is the break-even point in units for a company whose total fixed costs are $275, 450, selling price per unit is $16, and variable cost per unit is $14.75? A) 220,360 B) 150, 300 C ) 183,633 D) 225, 120arrow_forwardGiven that the total cost, C, is related to sales volume, x, by the equation y=1000+0.2x, say true or false for the following and proof it. (a) The cost-sales line rises $2 for each increase of $10 in sales volume. (b) The slope of the line is interpreted as variable costarrow_forward6. Once the break-even point is reached, which of the following statements is true? A) Variable expenses will remain constant in total. The contribution margin ratio begins to decrease. Operating income will increase by the unit contribution margin for each additional B) C) item sold. D) The total contribution margin changes from negative to positive. 7. The break-even in units sold will decrease if there is an increase in which of the following? A) Total fixed expenses. B) Selling price. C) Unit sales volume. D) Unit variable expenses. 8. Which of the following is normally included in product cost under the variable costing method? A) Prime cost and all conversion cost. B) Direct materials cost, direct labour cost, but not manufacturing overhead cost. Direct materials cost, direct labour cost, and variable manufacturing overhead cost. C) D) Prime cost but not conversion cost. 9. Regarding job-order costing and process costing: A) Job-order costing is better in the long run B) Are both…arrow_forward
- What is the Break-Even sales (in units) given the following data: Total Fixed Costs = $250,000.00 Unit Selling Price = $105.00 Unit Variable Cost = $65 10,000 6.250 3,846 2,381arrow_forward6. Longstreet Inc. has fixed operating costs of $370,000, variable costs of $2.80 per unit produced, and its product sells for $4.00 per unit. What is the company's break-even point, i.e., at what unit sales volume would income equal costs? а. 240,500 b. 357,667 с. 336,083 d. 308,333 e. 366,917arrow_forwardA company provided the following data: Selling price per unit $80 Variable cost per unit $55 Total fixed costs $490,000 What is the break-even point in units?arrow_forward
- The sole product of Kilo Company sells for $10 and its fixed costs total $220,000. If its break-even point is 170,000 units, what is its variable cost per unit? Select one: A. $8.71 B. $7.41 C. $9.23 D. $1.29 E. The answer cannot be determined by the information given.arrow_forward3arrow_forwardA company’s sales figure is £250,000 and its margin of safety ratio is 40%. Assuming that the fixed costs, the variable cost per unit and the selling price per unit do not change, the company’s margin of safety for sales of £325,000 will be: a. £175,000 b. £150,000 c. £100,000 d. £70,000arrow_forward
- What is the Break-Even sales (in units) given the following data: Total Fixed Costs = $250,000.00 Unit Selling Price = $105.00 Unit Variable Cost = $65 Group of answer choices a. 6,250 b. 10,000 c. 2,381 d. 3,846arrow_forwardContribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $15 Direct labor 10 Factory overhead $451,600 Selling expenses: Sales salaries and commissions 93,800 Advertising 31,800 Travel 7,100 Miscellaneous selling expense 7,800 Administrative expenses: Office and officers' salaries 91,700 Supplies 11,300 Miscellaneous administrative expense 10,500 Total $705,600 $42 It is expected that 10,800 units will be sold at a price of $140 a unit. Maximum sales within…arrow_forward2.9 Company X and Company Y sells the same product for the same price. Company X has fixed costs of Birr 100 and variable costs of Birr 10 per unit. Company Y has fixed costs of Birr 200 and variable costs of Birr8. What is the unit sales price at which these companies will have the same break-even point in terms of unit sales?arrow_forward
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