# Quiz 4 - 1 If sales remain the same and the margin of...

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Unformatted text preview: 1. If sales remain the same and the margin of safety increases, which of the following is true? Student Response Value Correct Answer Feedback 1. the breakeven point has decreased 100% 2. fixed costs have increased 0% 3. none of these is true 0% 4. the breakeven point has increased 0% Score: 0/0.5 2. If the selling price per unit increases, the break-even point in units will Student Response Value Correct Answer Feedback 1. increase 0% 2. remain the same 0% 3. decrease 100% 4. remain the same; however, contribution per unit will decrease 0% Score: 0/0.5 3. A profit-volume graph differs from a cost-volume-profits graph in that a profit- volume graph displays only Student Response Value Correct Answer Feedback 1. revenues and costs associated with sales volume 0% 2. all of these 0% 3. costs associated with units produced 0% 4. revenues expected at targeted sales levels 0% 5. operating income associated with expected sales 100% Score: 0/0.5 4. Melody Company sells a product for \$14, variable costs are \$10 per unit, and total fixed costs are \$5,040. If Melody wants to earn an operating profit of \$880, how many units must it sell? Student Response Value Correct Answer Feedback 1. 1,260 0% 2. 1,040 0% 3. 62 0% 4. 247 0% 5. 1,480 100% General Feedback: (\$5,040 + \$880)/(\$14 - \$10) = 1,480 Score: 0.5/0.5 5. Figure 4-2. Pauley Company provides home health care. Pauley charges \$35/hour for professional care. Variable casts are \$21/hour and fixed costs are \$78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. Refer to Figure 4-2. What is the budgeted operating income? Student Response Value Correct Answer Feedback 1. \$342,000 0% 2. \$90,000 100% 3. \$174,000 0% 4. \$420,000 0% 5. \$168,000 0% General Feedback: (\$35 × 12,000) - (\$21 × 12,000) - \$78,000 = \$90,000 Score: 0.5/0.5 6. Figure 4-3. Paney Company makes calendars. Information on cost per unit is as follows: Direct materials \$1.50 Direct labor 1.20 Variable overhead 0.90 Fixed overhead 1.00 Variable marketing expense 0.40 Fixed marketing expense totaled \$13,000 and fixed administrative expense totaled \$35,000. The price per calendar is \$10. Refer to Figure 4-3. What is the variable product expense per unit? Student Response Value Correct Answer Feedback 1. \$1.30 0% 2. \$4.00 0% 3. \$3.60 100% 4. \$5.00 0% 5. \$4.60 0% General Feedback: \$1.50 + \$1.20 + \$0.90 = \$3.60 Score: 0/0.5 7. If variable costs per unit decrease, sales volume at the break-even point will Student Response Value Correct Answer Feedback 1. decrease 100% 2. remain the same 0% 3. remain the same; however, contribution margin per unit will decrease 0% 4. increase 0% Score: 0.5/0.5 8....
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## This note was uploaded on 04/15/2008 for the course ACCT 2020 taught by Professor Lui during the Spring '08 term at North Texas.

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Quiz 4 - 1 If sales remain the same and the margin of...

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