{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

upQuiz2

# The sales units required to make a before tax profit

This preview shows pages 23–29. Sign up to view the full content.

The sales units required to make a before-tax profit of \$15,000 are calculated to be: Answer Selected Answer: 18,125 units. Question 33 2 out of 2 points High operating leverage is a measure of the risk of change in profit a firm assumes when it has relatively: Answer Selected Answer: High fixed cost. Question 34 2 out of 2 points Operating leverage is equal to: Answer Selected Answer: Question 35 2 out of 2 points Cleaning Care Inc.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
expects to sell 10,000 mops. Fixed costs are \$10,000, unit sales price is \$12, and unit variable costs are \$7. Cleaning Care's margin of safety in sales dollars is: Answer Selected Answer: \$96,000. Question 36 2 out of 2 points Which one of the following is not included as a factor in CVP analysis? Answer Selected Answer: Question 37 2 out of 2 points Cathy's Towels sells three items: bath towels, hand towels and washcloths in a 4:3:2 mix (a batch of 9 towels has 4 bath towels, 3 hand towels and 2 washcloths). Each bath towel sells for \$10 and costs \$4, each hand
towel sells for \$5 and costs \$2; and each washcloth sells for \$2.50 and costs \$1. The shop's annual fixed expenses are \$324,000, and the tax rate is 40%. How many bath towels must the firm sell at the breakeven point? Answer Selected Answer: 36,000. Question 38 2 out of 2 points Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Assume that Staley Co. is currently selling 600 computer monitors per month and monthly fixed costs are \$80,000.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Operating income is calculated to be: Answer Selected Answer: \$20,800. Question 39 2 out of 2 points Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs were \$8,400,000; unit sales price was \$4,600; and unit variable costs were \$2,200. Becker Sofa Company's margin of safety in units is calculated to be: Answer Selected Answer: 8,500. Question 40 2 out of 2 points Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs were \$8,400,000; unit sales price was \$4,600; and unit variable costs were \$2,200. Becker Sofa Company's margin of safety ratio is
calculated to be: Answer Selected Answer: 70.83%. Question 41 2 out of 2 points Cost-volume- profit relationships that are curvilinear may be analyzed linearly by considering only: Answer Selected Answer: Question 42 2 out of 2 points Cleaning Care Inc. expects to sell 10,000 mops. Fixed costs are \$10,000, unit sales price is \$12, and unit variable costs are \$7. Cleaning Care's margin of safety ratio is calculated to be: Answer Selected Answer: 80%. Question 43 2 out of 2 points

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Grant's Western Wear is a retailer of western hats located in Atlanta, Georgia. Although Grant's carries numerous styles of western hats, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personnel receive large commissions to encourage them to be more aggressive in their sales efforts. Currently the
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page23 / 32

The sales units required to make a before tax profit of...

This preview shows document pages 23 - 29. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online