Ünite Sınavı Soruları

Goldstar Inc. and Blackline Corp. are two competitors producing DVD players. Both firms record the same EBIT amount of $4,000,000. Goldstar Inc.’s management is conservative and relies more on equity financing whereas Blackline Inc. is a younger company utilizing more debt financing in its capital structure. Goldstar has a debt ratio of 20% and Blackline reports a debt ratio of 50%. Thus, Goldstar incurs $500,000 of interest expense while Blackline pays $1,750,000 of interest. The tax rate is 35% for both companies.

What is the DFL of these companies?

A corp. has a fixed costs of $500,000. And it sales only one product at $40 sale price with $15 variable costs. In case this corp. announces a $75,000 depreciation expense on its physical assets, find the cash break-even point in units.

A pen producer corporation sales its products $2/unit. It has variable costs of $1.2 per unit and total fixed cost of $50,000. What is the break-even sales in dollars?

Which one of the equation gives us the Unit Contribution Margin

A cable corp. is producing fiber obtic cables. The firm records $2,500,000 EBIT and incurs $500,000 of interest expense. What is the degree of financial leverage this company?

I. Depreciation expense is deducted from the variable cost in cash break even calculation.

II. Unless there is no depreciation expense, the cash break-even quantity will be less than the break-even quantity.

III. The cash fixed costs are divided by the contribition margin to determine the cash break-even quantity.

Which of the statements given above is/are correct?

Which of the following shows the degree of operating leverage?

What is the concept widely used to assess the operating risk of a business stemming from its cost structure called?

____________refers to the use of debt to acquire additional assets.

The CVP analysis is based upon the following assumptions, EXCEPT...

The One Corp. sold 20,000 last year and sales revenue of the company was $400,000 for the same year and $10 of variable costs per unit, $200,000 of total fixed costs. What is the contribution margin ratio?

What is CVP analysis?

Which of the following is the difference between the sales revenue and the total variable costs?

The management of ABC Corp. has an expected sales revenue of $950,000 and their break-even sales($) is 700.000 . What is the margin of safety ($)?

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

Suppose a corp. has an expected sales revenue of $820,000 and has a break-even point of $615,000. What is the margin of safety ratio for this corp.?

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

Which of the following is NOT one of the assumptions that CVP analysis is based upon?

MOD Company sells a single product at a price of $50/unit. The variable cost/unit is $10 and the company incurs total fixed costs of $90,000. What is the contribution margin ratio of the product?

Anadolu Corp. produces a kind of durable goods and sells all of its production. The price of the good is $250/unit. The company incurs $100 of variable costs per unit produced and sold. Anadolu Corp. has total fixed costs of $5,250,000. What is the break-even point of activity for Anadolu Corp.?