Chap 3 Practice Quiz

Chap 3 Practice Quiz - Finally, the fixed costs to produce...

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Accounting 230 Chapter 3 Practice Quiz 1. Cost-volume-profit analysis examines: A. the behavior of some costs and revenues as changes occur in the output level. B. The behavior of total costs, total revenues, and operating income as changes occur in the output level. C. A single revenue driver and multiple cost drivers in special case CVP. D. Multiple revenue drivers and a single cost driver in special case CVP. 2. What is the break-even point in units, assuming a product’s selling price is $100, its fixed costs are $8,000, its unit variable costs are $20, and its operating income is $32,000? A. 100 units B. 300 units C. 400 units D. 500 units 3. Gordon Company sells its only product for $18 per unit. Gordon’s variable production costs are $6 per unit, while its variable selling administrative costs are $3 per unit.
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Unformatted text preview: Finally, the fixed costs to produce 10,000 units were $10,000. What is the contribution margin ratio? A. 33.3 percent B. 66.7 percent C. 50.0 percent D. 44.4 percent 4. Assume the following cost information for Jackson Company: Selling price per unit $144 Variable costs per unit $ 80 Total fixed costs $80,000 Tax rate 40% What volume of sales dollars is required to earn an after-tax net income of $24,000? A. $216,000 B. $252,000 C. $270,000 D. $315,000 5. Helping Hands is a nonprofit organization that supplies fans during the summer for individuals in need. Fixed costs are $200,000. The fans cost $20 each. The organization has a budgeted appropriation of $480,000. How many people can receive a fan during the summer? A. 12,000 people B. 14,000 people C. 24,000 people D. 34,000 people...
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