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AC202quiz6Trammell

# AC202quiz6Trammell - range C Variable costs per unit of...

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AC 202 Principles of Accounting II Name: Barbie Trammell 574931 Park University Version D Quiz 6 D-Chapter 22 Multiple Choice Questions ( 10 points each ) Select the ONE, BEST Answer 1. A cost that remains the same in total even when volume of activity varies is a: A. Fixed cost. B. Curvilinear cost. C. Variable cost. D. Step-wise variable cost. E. Standard cost. 2. An important tool in predicting the volume of activity, the costs to be incurred, the sales to be earned, and the profit to be received is: 3. Cost-volume-profit analysis is based on three basic assumptions. Which of the following is not one of these assumptions?

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Unformatted text preview: range. C. Variable costs per unit of output remain constant as volume changes. D. Sales price per unit remains constant as volume changes. E. All of these are basic assumptions. 4. The excess of expected sales over the sales level at the break-even point is known as the: A. Sales turnover. B. Profit margin. C. Contribution margin. D. Relevant range. E. Margin of safety. Problem ( 60 Points ) SHOW ALL WORK!!!!!!!! A company manufactures a product and sells it for \$120 per unit. The total fixed costs of manufacturing and selling the product are expected to be \$155,250, and the variable costs are expected to be \$75 per unit. What is the company's break-even point in (a) units and (b) dollar sales? \$120 - \$75 = \$45 Contribution Margin Fixed Cost = \$155,250 BEP in units = 155,250 / 45 =3,450 BEP in sales = 3,450 * 120 = \$414,000...
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AC202quiz6Trammell - range C Variable costs per unit of...

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