ACCT 241 Week 5 Quiz

ACCT 241 Week 5 Quiz | Assignment Help | American University 

1.

Hara Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $159.80 per unit.

The best estimate of the total variable cost per unit is: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

·         $77.00

·         $60.60

·         $149.10

·         $138.80

2.

Mossfeet Shoe Corporation is a single product firm. The company is predicting that a price increase next year will not cause unit sales to decrease. What effect would this price increase have on the following items for next year?

Multiple Choice

·         Choice A

·         Choice B

·         Choice C

·         Choice D

3.

Moyas Corporation sells a single product for $20 per unit. Last year, the company's sales revenue was $300,000 and its net operating income was $24,000. If fixed expenses totaled $96,000 for the year, the break-even point in unit sales was:

Multiple Choice

·         12,000 units

·         9,900 units

·         15,000 units

·         14,100 units

4.

If sales volume increases and all other factors remain constant, then the:

Multiple Choice

·         contribution margin ratio will increase.

·         break-even point will decrease.

·         margin of safety will increase.

·         net operating income will decrease.

5.

Schister Systems uses the following data in its Cost-Volume-Profit analyses:

What is total contribution margin if sales volume increases by 20%?

Multiple Choice

·         $176,000

·         $86,400

·         $211,200

·         $57,600

6.

Gamach Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $104.50 per unit.

The best estimate of the total monthly fixed cost is:

Multiple Choice

·         $102,000

·         $518,900

·         $556,800

·         $481,000

7.

In describing the cost formula equation, Y = a + bX, which of the following is correct:

Multiple Choice

·         "Y" is the independent variable.

·         "a" is the variable cost per unit.

·         "a" and "b" are valid for all levels of activity.

·         in the high-low method, "b" equals the change in cost divided by the change in activity.

8.

Moyas Corporation sells a single product for $20 per unit. Last year, the company's sales revenue was $285,000 and its net operating income was $45,500. If fixed expenses totaled $97,000 for the year, the break-even point in unit sales was:

Multiple Choice

·         14,250 units

·         7,125 units

·         16,525 units

·         9,700 units

9.

Sabv Corporation's break-even-point in sales is $970,000, and its variable expenses are 80% of sales. If the company lost $47,000 last year, sales must have amounted to:

Multiple Choice

·         $923,000

·         $876,000

·         $735,000

·         $729,000

10.

Larker Brothers, Inc., used the high-low method to derive its cost formula for electrical power cost. According to the cost formula, the variable cost per unit of activity is $4 per machine-hour. Total electrical power cost at the high level of activity was $19,200 and at the low level of activity was $18,400. If the high level of activity was 3,300 machine hours, then the low level of activity was:

Multiple Choice

·         3,100 machine hours

·         3,200 machine hours

·         3,000 machine hours

·         2,900 machine hours