Asignación Individual (T2)

AI 1 (CVP/BEP)

1. Fixed costs are $1,500,000 and the contribution margin per unit is $150. What is the break-even point?

a. 10,000 units'           b.  $10,000,000      c. 3,750 units         d.       $3,750,000

2. Borehole's Company had actual sales of $800,000 when break-even sales were $600,000. What is the margin of safety ratio?

a. 75%                      b. 33%                     c. 67%                d. 25%    

3. How much sales are required to earn a target income of $80,000 if total fixed costs are $100,000 and the contribution margin ratio is 40%?

a. $300,000     b.  $450,000            c. $200,000                 d. $330,000                    

4. Clark Company had a contribution margin of $500,000 and a contribution margin ratio of 40%, total variable costs must have been

a. $200,000.00            b. $300,000.00                  c. $1,250,000.00   d. $750,000.00

5. Garland's Company's cost of goods sold is $350,000 variable and $200,000 fixed. The company's selling and administrative expenses are $250,000 variable and $300,000 fixed. If the company's sales are $1,400,000, what is its contribution margin?

a. $300,000     b.  $850,000             c. $800,000                 d. $900,000       

6. Moschino Company is planning to sell 400,000 hammers for $1.50 per unit. The contribution margin ratio is 20%. If Dolce will break even at this level of sales, what are the fixed costs?

a. $280,000             b. $120,000               c. $400,000        d. $480,000         

7. Johnson Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?

a. 30%                                     b. 60%               c. 40%                   d. 70%    

8. In 2008, Norris sold 3,000 units at $500 each. Variable expenses were $350 per unit, and fixed expenses were $200,000. The same selling price, variable expenses, and fixed expenses are expected for 2009. What is Norris's break-even point in units for 2009?

a. 3,000                                   b. 1,333               c. 4,285               d. 6,667 

9. Gautier's CVP income statement included sales of 2,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $44,000. Contribution margin is:

a. $200,000.00     b. $120,000.00          c. $36,000.00     d.   $80,000.00

10. Reese Company requires sales of $2,000,000 to cover its fixed costs of $700,000 and to earn net income of $500,000. What percent are variable costs of sales?

a. 25%             b. 35%                     c. 40%             d. 60%    

11. Denice Company sells compact disk players for $60 each. Variable costs are $40 per unit, and fixed costs total $30,000. How many compact disk players must Denice sell to earn net income of $70,000?

a. 1,500                         b. 3,500                 c. 2,500            d. 5,000 

12. A Disney's company division sold 200,000 calculators during 2008:

Sales                               $2,000,000

Variable costs:            

Materials                              380,000 

Order processing                 150,000  

Billing labor                          110,000

Selling expenses                    60,000  

Total variable costs              700,000

Fixed costs                        1,000,000

How much is the contribution margin per unit?

a. $1.00                    b. $6.50                  c. $8.50                 d.           $3.50 

13. Masset Company, sales is $1,000,000, fixed expenses are $300,000, and the contribution margin ratio is 36%. What are the total variable expenses?

a. $640,000              b. 192,000              c. $360,000          d.            $1,000,000

14. Vazquez CVP income statement included sales of 3,000 units, a selling price of $100, variable expenses of $60 per unit, and net income of $50,000. Fixed expenses are

a. $300,000.00             b.  $120,000.00    c.  $180,000.00     d.  $70,000.00                        

15. Fixed costs are $300,000 and the variable costs are 75% of the unit selling price. What is the break-even point in dollars?

a. $1,200,000           b. $900,000             c. $700,000           d.          $400,000        

16. Anthony's Company recorded operating data for its shoe division for the year. The company's desired return is 5%.

Sales                                                     $500,000       

Contribution margin                                100,000      

Total direct fixed costs                              60,000     

Average total operating assets                200,000      

Which one of the following reflects the controllable margin for the year?

a. 20%                      b.  $40,000                      c. $30,000             d.  50%    

17. Smith, Inc. wants to sell a sufficient quantity of products to earn a profit of $40,000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $80,000, how many units must be sold to earn income of $40,000?

a. 600,000 units           b. 40,000 units                c. 15,000 units     d. 60,000 units  

18. Howard Company sells 100,000 wrenches for $12.00 per unit. Fixed costs are $350,000 and net income is $250,000. What should be reported as variable expenses in the CVP income statement?

a. $540,000                  b. $850,000          c. $950,000                  d.  $600,000        

19. Form's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?

a. $18,000                 b. $28,000              c. $6,000                    d. $12,000