# Quiz6.docx - 1"what-if technique used to see what impact a...

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1. "what-if" technique used to see what impact a change in an underlying variable has on the answer is a: a. break-even point. b. cost-volume-profit analysis. c. degree of operating leverage. d. sensitivity analysis. e. indifference point. 4.00000 points Question 5 1. Assume the following information: Selling price per unit \$200 Contribution margin ratio 50% Total fixed costs \$275,000 How many units must be sold to generate a profit of \$50,000? a. 3,250 units b. 2,500 units c. 2,750 units d. 4,000 units 4.00000 points Question 6

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1. Paney Company makes calendars. Information on cost per unit is as follows: Direct materials \$1.50 Direct labor 1.20 Variable overhead 0.90 Variable marketing expense 0.40 2. Fixed marketing expense totaled \$13,000 and fixed administrative expense totaled \$35,000. The price per calendar is \$10. What is the contribution margin per unit? a. \$5.00 b. \$6.00 c. \$6.30 d. \$6.40 e. \$5.40 4.00000 points Question 7 1. Which of the following is true of a contribution margin ratio? a. It is the proportion of each sales dollar available to cover variable costs. b. If the contribution margin ratio increases, more units must be sold to break even. c. If the contribution margin ratio increases, the price must have decreased. d. If the contribution margin ratio increases, the variable cost ratio decreases e. It is complementary to the net profit ratio. 4.00000 points Question 8 1. Hill & Scott Company sells a product for \$20. Variable costs are \$15 per unit, and total fixed costs are \$7,000. How many units must be sold by Hill & Scott to earn a profit of \$1,000?
a. 1,040 units b. 1,600 units c. 247 units d. 1,400 units e. 62 units 4.00000 points Question 9 1. Yerke Company makes jungle gyms and tree houses for children. For jungle gyms, the price is

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