Ünite Sınavı Soruları

_________________shows the amount of income generated to cover up the total fixed costs and earn the targeted profit.

Cold Co. sells one product for $10 per unit. Variable production costs are $5 per unit and fixed costs are $150.000. What is break-even sales in dollars?

_ _ _ _ _ _ _ is the cushion amount that the actual or budgeted sales can drop by, still enabling the business to break even.

Which of the following completes the sentences above?

Hakan and Hasan are two competitors in the same industry. Both companies produce computer hardware. Hakan expects a 20% increase in its operating income if its sales were to rise by 10%. On the other hand, Hasan has a contribution margin ratio of 50%, total fixed costs of $500,000 and sales revenue of $2,500,000.What is the DOL for both Hakan and Hasan?

Which of the following assumptions is the CVP based upon?

I.    The sales price per unit is constant
II.   Variable costs per unit and fixed costs are variable
III.  The firm sells all units produced
IV.   The cost structure is constant meaning that costs change only by the level of activity

A firm has a DFL of 2.5 at X dollars. What does this tell us about the firm?

Selex and Medex are two competitors in the same industry. Both companies produce computer hardware. Selex expects a 20% increase in its operating income if its sales were to rise by 10%. On the other hand, Medex has a contribution margin ratio of 50%, total fixed costs of $500,000 and sales revenue of $2,500,000. If both companies are expecting a 15% increase in sales as the result of the expansion in the market, how much will their operating income change?

HKN Corp. manufactures a computer appliance and sells all of its production. The price of the appliance is $24/unit. The company incurs $10 of variable costs per unit produced and sold. HKN has total fixed costs of $420,000. What is the break-even point of activity for HKN?

ABC company sells sneakers for $45. The variable cost is $20 per unit. The fixed costs are $75,000. The company wants to have an operating profit of $25,000. How many units do they have to sell to achieve this goal?

Which of the following refer to the costs that do not vary with the level of activity of a firm?

Pencil Inc. manufactures two different electrical components. Component A has a contribution margin ratio of 60% and component B has a contribution margin ratio of 40%. Pencil’s sales mix is 75% component A and 25% component B. The company’s total fixed costs are $110,000. What is the break-even sales revenue for Pencil Inc.?

Higher financial risk is is related to the use of additional __________.

September Corp. sells a single product at a price of $80/unit. The variable cost/unit is $50 and the company incurs total fixed costs of $180,000. What is the contribution margin ratio of the product?

_ _ _ _ _ _ _ measures the sensitivity in the EPS relative to a percentage variation in the sales revenue. 

Which of the following completes the sentences above?

Rockstar Inc. produces DVD players. The firm record EBIT amount of $6,000,000. Rockstar has a debt ratio of 20% Thus, Rockstar incurs $300,000 of interest expense. The tax rate is 35%. What is the DFL for the company?

XYZ Co. is a manufacturer of a single product which it totally sells in the domestic market. The sales price of the product is $900. The unit variable cost is $300. What is the contribution margin per unit?

Svpam Corp. has a break-even point of 10,000 units, which sell for $12 per. The company’s total sales are $300,000. What is the company’s margin of safety ratio?

Which of the following refers to the cost that change depending on the company's volume?

XYS Corp. sells only one product at a price $20. The sales quantity for 2017 is 1,000 units. Total fixed costs of the company is $4,000 and variable costs per unit are $8. What is the DOL of the company for 2017?