Garrison 13e 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.Chen & Chen Furniture Inc. sells a small handcrafted table for $30 per unit. The variable costs
related to the table, including product and shipping costs, are $18 per unit. Total fixed costs
for the company are $60,000. Prepare a CVP graph to approximate the breakeven point in
dollars and units.
2.Barnard Ltd. sells a single product. The product has a selling price of $100 per unit, variable
expenses of 80% of sales, and its fixed expenses total $150,000 per year.
Part (a) What is the company’s contribution margin ratio?
Part (b) What is its breakeven point? (Give answer in dollars and in units.)
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View Full Document3.Dahlia Manufacturing Company reported $4,000,000 of sales during the month and incurred
variable expenses totaling $2,800,000 and fixed expenses of $720,000. A total of 80,000
units were produced and sold last month. The company has no beginning or ending
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 Spring '11
 Dr.Zachry
 Managerial Accounting, Contribution Margin

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