Ünite Sınavı Soruları

Which of the following is P in the CVP equation?

MonkeyOne Corp. manufactures socks and sells all of its production. The price of the socks is $15 per unit and $9 of variable costs per unit produced and sold. The company has total fixed costs of $540,000 What is the break-even point of activity for MonkeyOne?

What shows  the amount of income generated to cover up the total fixed costs and earn the targeted profit?

The goods and services consumed by the world population are produced by millions of businesses around the world established and operated by the same goal. What is this goal?

A firm has a DOL of 3 at Q units. What does this tell us about the firm?

________ is the product of the sales price per unit and the quantity sold.

ABC company sells shirts for $50. The variable cost is $20 per unit. The fixed costs are $600,000. What is the break-even quantity?

Selex produces computer hardware. Selex expects a 80% increase in its operating income if its sales were to rise by 20%.What is the DOL for Selex?

ABC Corp. manufactures a computer appliance and sells all of its production. The price of the appliance
is $20/unit. The company incurs $5 of variable costs per unit produced and sold. ABC has total fixed
costs of $300,000. What is the break-even point of activity for ABC?

A firm's degree of total leverage (DTL) is equal to its degree of operating leverage            its degree of financial leverage (DFL).

Parrot Corp. is manufacturing two different types of bicycles, a mountain type bike and a city bike.
The city type bike has a contribution margin ratio of 60% while for the mountain bike it is 30%. The sales mix of Parrot is composed of 60% city bike and 25% mountain bike. The total fixed costs of the company is $43,500. What is the overall break-even sales of Parrot?

The DuckCold manufactures two products, hat and gloves. The total fixed costs of the DuckCold is $540,000. The sales mix of the DuckCold is composed of 60% hat, 40% gloves and the ski hat has contribution margin ratio of 50% while for the gloves it is 60%.  What is the break-even sales of gloves?

ABC company sells shirts for $50. The variable cost is $20 per unit. The fixed costs are $600,000. Thus, the unit contribution margin is .......... and the contribution margin ratio is ...............

I. They increase or decrease depending on company's production volume.

II. They are the expenses that have to be paid by a company, independent of any business activity.

III. They are corporate expenses  that change in proportion with production output.

Which of the statements above are true regarding a variable cost?

_ _ _ _ _ _ _ directly change in proportion to the level of activity while the        _ _ _ _ _ _ _ are the same within a specific activity range. 

Which of the following completes the sentences above?

___________is the difference between the sales revenue and the operating costs of the business.

Which of the following sentences could be true if a company has DOL of 2?

Determine the margin of safety ratio given following data:
Sales Price is $15,  Variable Cost per unit is $ 10,  number of units sold is 1,000 and Fixed Costs are $ 60,000.

Which one of the following is not correct?

Which one of the following is not a component of the CVP equation?