GNB 11/e Practice Exam – Chapter 6
Print these pages. Answer each of the following questions, explaining your answers or
showing your work, as appropriate, and then compare your solutions to those provided at the
end of the practice exam.
1.Van Roekel Company sells a single product. The product has a selling price of $100 per unit
and variable expenses of 80% of sales. If the company's fixed expenses total $150,000 per
year, what will the breakeven point be? (Give answer in dollars and in units.)
2.Truesdale Company sells handcrafted furniture. One item it sells is a foot stool which sells for
$30 per unit. The variable costs related to the stool, including product and shipping costs, are
$18 per unit. Total fixed costs for the company are $60,000. Assuming the stools are the only
product the company sells this year, draw a CVP graph to represent the company’s sales and
expenses. From this graph, compute the approximate breakeven point in dollars and units.
3.The following is Charles Corporation's contribution format income statement for last month:
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 Spring '07
 Schorg
 Managerial Accounting, Contribution Margin, Expenses, Van Roekel Company

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