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Unformatted text preview: Acc 312 - Spring 2009 Quiz #7 - Chapter 7 - Solution ( Please note that there were multiple versions of the quiz) Please choose the BEST answer for each question. 1. Which of the following would take place if a company were able to reduce only its variable cost per unit? Contribution Margin Break-even Point a. Increase Increase b. Increase Decrease c. Decrease Increase d. Decrease Decrease e. Increase No effect 2. Adams has a break-even point of 40,000 units. If the firms sole product sells for $24 and fixed costs total $240,000, the variable cost per unit must be: a. $6 $960,000 Sales revenue (40,000 * 24) b. $10 <240,000 > Fixed costs c. $18 $720,000 / 40,000 units = $18 variable cost / unit d. an amount that cannot be derived based on the information presented. e. an amount other than those in choices a, b, and c but one that can be derived based on the information presented....
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- Spring '07