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# CH 3 QuizKEY - 1 Schuppener Company sells its only product...

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1. Schuppener Company sells its only product for \$18 per unit, variable production costs are \$6 per unit, and selling and administrative costs are \$3 per unit. Fixed costs for 10,000 units are \$10,000. The contribution margin is: a. \$12 per unit b. \$9 per unit c. \$11 per unit d. \$8 per unit Answer : b Difficulty : 2 Objective : 2 Terms to Learn : cost-volume-profit (CVP) analysis \$18 – \$6 – \$3 = \$9 2. Fixed costs equal \$12,000, unit contribution margin equals \$20, and the number of units sold equal 1,600. Operating income is: Answer : b Difficulty : 3 Objective : 2 Terms to Learn : cost-volume-profit (CVP) analysis (1,600 x \$20) – \$12,000 = \$20,000 3. At the breakeven point of 200 units, variable costs total \$400 and fixed costs total \$600. The 201st unit sold will contribute ___________ to profits. Answer : c Difficulty : 3 Objective : 3 Terms to Learn : contribution margin \$1,000 \$400 \$600 = 0; Sales (\$1,000 / 200) – Variable costs (\$400 / 200) = \$3 CM

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