Chapter 6 Quiz review

# Chapter 6 Quiz review - as follows 3 The break-even point...

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1. Last year, Twins Company reported \$750,000 in sales (25,000 units) and a net operating income of \$25,000. At the break-even point, the company's total contribution margin equals \$500,000. Based on this information, the company's: A. contribution margin ratio is 40%. B. break-even point is 24,000 units. C . variable expense per unit is \$9. D. variable expenses are 60% of sales. 2. A company has provided the following data: If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net operating income will: A. increase by \$61,000. B. increase by \$20,000. C. increase by \$3,500. D. increase by \$11,000. Hurst Co. manufacturers and sells a single product. Price and cost data regarding this product are

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Unformatted text preview: as follows: 3. The break-even point in units per year is: A. 15,200 units B. 26,600 units C . 38,000 units D. 40,000 units 4. How many units need to be sold to earn an annual net operating income equal to 10% of sales? A. 44,000 units B. 53,200 units C. 54,500 units D. 47,500 units 5. . In the current year, the company sold 43,000 units. Due to competition, management will be forced to lower the selling price by 10% next year. How many units must be sold next year to earn the same income as was earned in the current year? A. 50,000 units B. 53,200 units C. 58,800 units D. 60,200 units Answer: 1. C 2. D 3. C 4. B 5. D...
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Chapter 6 Quiz review - as follows 3 The break-even point...

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