A company produces a product with a contribution

A company produces a product with a contribution margin of $36. If the company incurs $62,000 in fixed
costs, expected to sell 2500 units, and has a tax rate of 35%, the pre-tax income is
The ABC Company had its highest level of production in May when they produced 4000 units at a total
cost of $110000 and its lowest level of production in November when they produced 2500 units at a
total cost of $87500. Using the high-low method, the estimated variable cost per unit is
$15 or 50000
The amount by which a product’s unit selling price exceeds its total unit variable cost is the:
A company has pre-tax income of $125000 and an income tax rate of 35%. The after-tax income is
Managers make assumption in CVP analysis. These assumptions include:

A manufacturing company incurs rent costs of $12500 per month. The company manufactured 250000
units in May and 300,000 units in June. The cost per unit in May and June, respectively, is:
The three methods used to classify costs into their fixed and variable components includes
When preparing a scatter diagram, the estimated line of cost behavior crosses the vertical axis at the:
A company has fixed costs of $50,000 while manufacturing a product that has variable costs of $4 per
unit and sells for $15 per unit. The break-even point is ____ units
Cost-volume-profit analysis helps managers predict how changes in ___ and ___ levels affect income
A manufacturing company incurs direct materials costs of $5 per unit. The total direct materials is ____
when the company manufactures 2000 units
$12000 or $3
A manufacturing company incurs direct materials cost of $6 per unit. The total direct materials cost is
$12000 when the company manufactures 2,000 units
- $12,000
A company incurs $12000 in direct labor costs when the produce 480 units and $12500 in direct labor
costs when they produce 500 units. The direct labor cost per unit is

A company sells two models of a product – basic and premium. The basic model has a variable cost of
$75 and sells for $100. The premium model has a variable cost of $100 and sells for $150. If the company
usually sells 5000 basic models and 25000 premium models, then the weighted-average contribution
margin is
$33.34 or 150 units
$25 x 2/3 + $50 x 1/3 = $16.67 + 16.67 = 33.34
$15000 / (2 x ($100-75) + 1 x ($150-100)) = 150 units
Sales mix is the (volume/ratio/mix) ____ of the sales volumes for various products.