The following data have been provided by a retailer

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11.The following data have been provided by a retailerthat sells a single product.This YearLast YearUnits sold200,000150,000Sales revenueP1,000,000P750,000Less cost of goods sold700,000525,000Gross marginP300,000P225,000Less operatingexpenses222,000210,000Net incomeP78,000P 15,000What is the best estimate of the company'scontribution margin for this year?A. P252,000C. P158,000B. P300,000D. P120,000Since 1977Since 1977
12.Total production costs of prior periods for a companyare listed as follows. Assume that the same costbehavior patterns can be extended linearly over therange of 3,000 to 35,000 units and that the cost driverfor each cost is the number of units produced.Production inunitspermonth3,0009,00016,00035,000Cost XP23,700P52,680P86,490P178,260Cost Y47,280141,840252,160551,600What is the average cost per unit at a production levelof 8,000 units for cost X?
13.If unit outputs exceed the breakeven point
14.If a firm's net income doesnot change as its volumechanges, the firm('s)
15.According to CVP analysis, a company could neverincur a loss that exceeded its totalA. variable costs.C. costs.B. fixed costs.D. contribution margin.
EXCEL PROFESSIONAL SERVICES, INC.16.On January 1, 2019, Lake Co. increased its direct laborwage rates.All other budgeted costs and revenueswere unchanged.How did this increase affect Lake’sbudgeted breakeven point and budgeted margin ofsafety?A.B.C.BudgetedBreakeven PointIncreaseIncreaseDecreaseDecreaseBudgetedMargin ofSafetyIncreaseDecreaseDecreaseIncreaseD.
Page 2 of 6MAS.SET A
17.Love Corp. is operationally a highly leveragedcompany, that is, it has high fixed costs and lowvariable costs.As such, small changes in sales volumeresult in
B. large changes in net incomeC. negligible change in net incomeD. no change in net income
18.The margin of safety percentage is computed as:A. Break-even sales/Total sales.B. Total sales - Break-even sales.C. (Total sales - Break-even sales)/Break-even salesD. (Total sales - Break-even sales)/ Total sales
19.If the sales mix shifts toward higher contributionmargin products, the break-even point

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Term
Spring
Professor
DelaCruz
Tags
Accounting, Financial Accounting, professional services, Bayan Company

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