2020 Quiz 13 CVP

2020 Quiz 13 CVP - QUIZ 13 CVP Name: _ Highlight correct...

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Name: __________________________ Highlight correct answer in yellow ( due April 5th .) Submit via D2L dropbox 1. A company has contribution margin per unit of $45 and a contribution margin ratio of 40%. What is the unit selling price? A) $75.00 B) $112.50 C) $18.00 D) Cannot be determined. 2. Sales are $500,000 and variable costs are $350,000. What is the contribution margin ratio? A) 43% B) 30% C) 70% D) Cannot be determined because amounts are not expressed per unit. 3. Disney's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase? A) $18,000 B) $28,000 C) $12,000 D) $6,000 4. Sarks Company has a contribution margin of $150,000 and a contribution margin ratio of 30%. How much are total variable costs? A) $45,000 B) $350,000 C) $105,000 D) $500,000 5. Hardage Company has a contribution margin per unit of $15 and a contribution margin ratio of 60%. How much is the selling price of each unit?
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2020 Quiz 13 CVP - QUIZ 13 CVP Name: _ Highlight correct...

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