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Meyer Compony prepared the following contribution format income statement based on a sale volume of 1,000 units:

Item Amount Sales $56,000 Variable Expenses $36,000 Contribution Margin $20,000 Fixed Expenses $14,000 Net Operating Income $6,000

What is the margin of safety percentage?

  • 30% (correct)
  • 29%
  • 31%
  • 28%
  • Meyer Compony prepared the following contribution format income statement based on a sale volume of 1,000 units:

    Item Amount Sales $56,000 Variable Expenses $36,000 Contribution Margin $20,000 Fixed Expenses $14,000 Net Operating Income $6,000

    If the variable cost per unit increase by $1 per unit, spending on advertising increases by $ 1,500 and unit sales increase by 250 units, what would be the net operating income?

  • 8,500
  • -8,250
  • 8,250 (correct)
  • 8,520
  • Meyer Compony prepared the following contribution format income statement based on a sale volume of 1,000 units:

    Item Amount Sales $56,000 Variable Expenses $36,000 Contribution Margin $20,000 Fixed Expenses $14,000 Net Operating Income $6,000

    breakeven point in unit sales

  • 700 (correct)
  • 600
  • 800
  • 750
  • Meyer Company prepared the following contribution format income statement based on a sale volume of 1,000 units:

    breakeven point in dollar sales

    <p>39,200 (A)</p> Signup and view all the answers

    Meyer Company prepared the following contribution format income statement based on a sale volume of 1,000 units:

    TABELLA

    contribution margin ratio?

    <p>35,7 (A)</p> Signup and view all the answers

    Meyer Company prepared the following contribution format income statement based on a sale volume of 1,000 units:

    TABELLA

    if sales decline to 900 units, net operating income?

    <p>4,000 (A)</p> Signup and view all the answers

    Meyer Company prepared the following contribution format income statement based on a sale volume of 1,000 units:

    item Amount Sales $56,000 Variable Expenses $36,000 Contribution Margin $20,000 Fixed Expenses $14,000 Net Operating Income $6,000

    If the selling price increased by 2$ per unit and the sales volume decreased by 100 units, what would be the net operating income?

    <p>5800 (A)</p> Signup and view all the answers

    Meyer Company prepared the following contribution format income statement based on a sale volume of 1,000 units:

    item Amount Sales $56,000 Variable Expenses $36,000 Contribution Margin $20,000 Fixed Expenses $14,000 Net Operating Income $6,000

    What is the degree of operating leverage?

    <p>3.33 (A)</p> Signup and view all the answers

    Meyer Company prepared the following contribution format income statement based on a sale volume of 1,000 units:

    item Amount Sales $56,000 Variable Expenses $36,000 Contribution Margin $20,000 Fixed Expenses $14,000 Net Operating Income $6,000

    What is the percent increase in net operating income that would result from a 5% increase in unit sales?

    <p>16.65 (A)</p> Signup and view all the answers

    Meyer Company prepared the following contribution format income statement based on a sale volume of 1,000 units:

    item Amount Sales $56,000 Variable Expenses $36,000 Contribution Margin $20,000 Fixed Expenses $14,000 Net Operating Income $6,000

    based on the info above, variable expense ratio?

    <p>64.29 (A)</p> Signup and view all the answers

    Meyer Company prepared the following contribution format income statement based on a sale volume of 1,000 units:

    item Amount Sales $56,000 Variable Expenses $36,000 Contribution Margin $20,000 Fixed Expenses $14,000 Net Operating Income $6,000

    How many units must be sold to achieve a target profit of 5,000$?

    <p>950 (A)</p> Signup and view all the answers

    Meyer Company prepared the following contribution format income statement based on a sale volume of 1,000 units:

    item Amount Sales $56,000 Variable Expenses $36,000 Contribution Margin $20,000 Fixed Expenses $14,000 Net Operating Income $6,000

    if sales increase to 1001 units what would be the increase in net operating profit?

    <p>20 (A)</p> Signup and view all the answers

    Ma.Do Ce Company manufoctures one product that is sold for s360 per unit in two geographic regions - East and West. The following information pertains to the company's first year of operations, in which it produced 80,000 units and sold 70,000 units:

    Variable cost per unit Manufacturing:

    • Direct materials 144
    • Direct labour 84
    • Variable manufacturing overhead 12
    • Variable selling and administrative 24

    Fixed cost per year. • Fixed manufacturing overhead 4,800,000 Fixed selling and administrative expenses 1.984.000

    The company sold 50,000 units in the East region and 20,000 units in the West region. It determined that $ 1,000,000 of its fixed selling and administrative expenses is traceable to the East region, $ 600.000 is traceable to the West region and the remaining $ 384,000 is a common fixed expense The Company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

    Based on given information, what is the total contribution margin under variable costing for the East region?

    <p>4,800,000 (A)</p> Signup and view all the answers

    Ma.Do Ce Company manufoctures one product that is sold for s360 per unit in two geographic regions - East and West. The following information pertains to the company's first year of operations, in which it produced 80,000 units and sold 70,000 units:

    Variable cost per unit Manufacturing:

    • Direct materials 144
    • Direct labour 84
    • Variable manufacturing overhead 12
    • Variable selling and administrative 24

    Fixed cost per year. • Fixed manufacturing overhead 4,800,000 Fixed selling and administrative expenses 1.984.000

    The company sold 50,000 units in the East region and 20,000 units in the West region. It determined that $ 1,000,000 of its fixed selling and administrative expenses is traceable to the East region, $ 600.000 is traceable to the West region and the remaining $ 384,000 is a common fixed expense The Company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

    Based on given information, what is the product manufacturing cost under absorption costing?

    <p>324 (A)</p> Signup and view all the answers

    Ma.Do Ce Company manufoctures one product that is sold for s360 per unit in two geographic regions - East and West. The following information pertains to the company's first year of operations, in which it produced 80,000 units and sold 70,000 units:

    Variable cost per unit Manufacturing:

    • Direct materials 144
    • Direct labour 84
    • Variable manufacturing overhead 12
    • Variable selling and administrative 24

    Fixed cost per year. • Fixed manufacturing overhead 4,800,000 Fixed selling and administrative expenses 1.984.000

    The company sold 50,000 units in the East region and 20,000 units in the West region. It determined that $ 1,000,000 of its fixed selling and administrative expenses is traceable to the East region, $ 600.000 is traceable to the West region and the remaining $ 384,000 is a common fixed expense The Company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

    If sales volumes in the est region and west region had been reversed, what would be the impact on breck even point in unit sales?

    <p>increase for West (A), decrease for est (B)</p> Signup and view all the answers

    Ma.Do Ce Company manufoctures one product that is sold for s360 per unit in two geographic regions - East and West. The following information pertains to the company's first year of operations, in which it produced 80,000 units and sold 70,000 units:

    Variable cost per unit Manufacturing:

    • Direct materials 144
    • Direct labour 84
    • Variable manufacturing overhead 12
    • Variable selling and administrative 24

    Fixed cost per year. • Fixed manufacturing overhead 4,800,000 Fixed selling and administrative expenses 1.984.000

    The company sold 50,000 units in the East region and 20,000 units in the West region. It determined that $ 1,000,000 of its fixed selling and administrative expenses is traceable to the East region, $ 600.000 is traceable to the West region and the remaining $ 384,000 is a common fixed expense The Company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

    Based on given information, what is the company's net operating income under variable costing?

    <p>-64,000 (A)</p> Signup and view all the answers

    Ma.Do Ce Company manufoctures one product that is sold for s360 per unit in two geographic regions - East and West. The following information pertains to the company's first year of operations, in which it produced 80,000 units and sold 70,000 units:

    Variable cost per unit Manufacturing:

    • Direct materials 144
    • Direct labour 84
    • Variable manufacturing overhead 12
    • Variable selling and administrative 24

    Fixed cost per year. • Fixed manufacturing overhead 4,800,000 Fixed selling and administrative expenses 1.984.000

    The company sold 50,000 units in the East region and 20,000 units in the West region. It determined that $ 1,000,000 of its fixed selling and administrative expenses is traceable to the East region, $ 600.000 is traceable to the West region and the remaining $ 384,000 is a common fixed expense The Company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

    Based on given information, what is the total contribution margin under variable costing for the West region?

    <p>1,920,000 (A)</p> Signup and view all the answers

    Ma.Do Ce Company manufoctures one product that is sold for s360 per unit in two geographic regions - East and West. The following information pertains to the company's first year of operations, in which it produced 80,000 units and sold 70,000 units:

    Variable cost per unit Manufacturing:

    • Direct materials 144
    • Direct labour 84
    • Variable manufacturing overhead 12
    • Variable selling and administrative 24

    Fixed cost per year. • Fixed manufacturing overhead 4,800,000 Fixed selling and administrative expenses 1.984.000

    The company sold 50,000 units in the East region and 20,000 units in the West region. It determined that $ 1,000,000 of its fixed selling and administrative expenses is traceable to the East region, $ 600.000 is traceable to the West region and the remaining $ 384,000 is a common fixed expense The Company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

    Based on given information, what is the company's breckeven point in unit sales?

    <p>70,667 (A)</p> Signup and view all the answers

    Ma.Do Ce Company manufoctures one product that is sold for s360 per unit in two geographic regions - East and West. The following information pertains to the company's first year of operations, in which it produced 80,000 units and sold 70,000 units:

    Variable cost per unit Manufacturing:

    • Direct materials 144
    • Direct labour 84
    • Variable manufacturing overhead 12
    • Variable selling and administrative 24

    Fixed cost per year. • Fixed manufacturing overhead 4,800,000 Fixed selling and administrative expenses 1.984.000

    The company sold 50,000 units in the East region and 20,000 units in the West region. It determined that $ 1,000,000 of its fixed selling and administrative expenses is traceable to the East region, $ 600.000 is traceable to the West region and the remaining $ 384,000 is a common fixed expense The Company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

    Based on given info, what is the total segment net operating profit under variable costing for the west region?

    <p>1,320,000 (A)</p> Signup and view all the answers

    Ma.Do Ce Company manufoctures one product that is sold for s360 per unit in two geographic regions - East and West. The following information pertains to the company's first year of operations, in which it produced 80,000 units and sold 70,000 units:

    Variable cost per unit Manufacturing:

    • Direct materials 144
    • Direct labour 84
    • Variable manufacturing overhead 12
    • Variable selling and administrative 24

    Fixed cost per year. • Fixed manufacturing overhead 4,800,000 Fixed selling and administrative expenses 1.984.000

    The company sold 50,000 units in the East region and 20,000 units in the West region. It determined that $ 1,000,000 of its fixed selling and administrative expenses is traceable to the East region, $ 600.000 is traceable to the West region and the remaining $ 384,000 is a common fixed expense The Company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

    Based on given info, what is the company's net operating income under absorption costing?

    <p>536,000 (A)</p> Signup and view all the answers

    Ma.Do Ce Company manufoctures one product that is sold for s360 per unit in two geographic regions - East and West. The following information pertains to the company's first year of operations, in which it produced 80,000 units and sold 70,000 units:

    Variable cost per unit Manufacturing:

    • Direct materials 144
    • Direct labour 84
    • Variable manufacturing overhead 12
    • Variable selling and administrative 24

    Fixed cost per year. • Fixed manufacturing overhead 4,800,000 Fixed selling and administrative expenses 1.984.000

    The company sold 50,000 units in the East region and 20,000 units in the West region. It determined that $ 1,000,000 of its fixed selling and administrative expenses is traceable to the East region, $ 600.000 is traceable to the West region and the remaining $ 384,000 is a common fixed expense The Company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

    Based on given info, what is the unit product manufacturing cost under variable costing?

    <p>240 (A)</p> Signup and view all the answers

    Ma.Do Ce Company manufoctures one product that is sold for s360 per unit in two geographic regions - East and West. The following information pertains to the company's first year of operations, in which it produced 80,000 units and sold 70,000 units:

    Variable cost per unit Manufacturing:

    • Direct materials 144
    • Direct labour 84
    • Variable manufacturing overhead 12
    • Variable selling and administrative 24

    Fixed cost per year. • Fixed manufacturing overhead 4,800,000 Fixed selling and administrative expenses 1.984.000

    The company sold 50,000 units in the East region and 20,000 units in the West region. It determined that $ 1,000,000 of its fixed selling and administrative expenses is traceable to the East region, $ 600.000 is traceable to the West region and the remaining $ 384,000 is a common fixed expense The Company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

    Based on given info, what is the total segment net operating profit under variable costing for east region?

    <p>3,800,000 (A)</p> Signup and view all the answers

    Ma.Do Ce Company manufoctures one product that is sold for s360 per unit in two geographic regions - East and West. The following information pertains to the company's first year of operations, in which it produced 80,000 units and sold 70,000 units:

    Variable cost per unit Manufacturing:

    • Direct materials 144
    • Direct labour 84
    • Variable manufacturing overhead 12
    • Variable selling and administrative 24

    Fixed cost per year. • Fixed manufacturing overhead 4,800,000 Fixed selling and administrative expenses 1.984.000

    The company sold 50,000 units in the East region and 20,000 units in the West region. It determined that $ 1,000,000 of its fixed selling and administrative expenses is traceable to the East region, $ 600.000 is traceable to the West region and the remaining $ 384,000 is a common fixed expense The Company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

    Based on given info, what is the company's total contribution margin under variable costing?

    <p>6,720,000 (A)</p> Signup and view all the answers

    Ma.Do Ce Company manufoctures one product that is sold for s360 per unit in two geographic regions - East and West. The following information pertains to the company's first year of operations, in which it produced 80,000 units and sold 70,000 units:

    Variable cost per unit Manufacturing:

    • Direct materials 144
    • Direct labour 84
    • Variable manufacturing overhead 12
    • Variable selling and administrative 24

    Fixed cost per year. • Fixed manufacturing overhead 4,800,000 Fixed selling and administrative expenses 1.984.000

    The company sold 50,000 units in the East region and 20,000 units in the West region. It determined that $ 1,000,000 of its fixed selling and administrative expenses is traceable to the East region, $ 600.000 is traceable to the West region and the remaining $ 384,000 is a common fixed expense The Company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

    Based on given info, what is the company's fixed manufacturing overhead absorbtion rate?

    <p>60 per unit (A)</p> Signup and view all the answers

    Ce.st Company relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows. Cost description Direct materials Direct laboura Variable manufacturing overead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions. Variable administrative expense Average cost per unit $ 18.00 $ 10.50 $4.50 $ 12.00 $9.00 $ 6.00 $ 3.00 $ 1.50 Assume that 8,000 units are produced and sold. What is the variable cost per unit produced and sold?

    <p>37.5 (B)</p> Signup and view all the answers

    Ce.st Company relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows. Cost description Direct materials Direct laboura Variable manufacturing overead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions. Variable administrative expense Average cost per unit $ 18.00 $ 10.50 $4.50 $ 12.00 $9.00 $ 6.00 $ 3.00 $ 1.50 What is the total amount of product cost incurred to make 10,000 units?

    <p>450,000 (B)</p> Signup and view all the answers

    Ce.st Company relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows. Cost description Direct materials Direct laboura Variable manufacturing overead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions. Variable administrative expense Average cost per unit $ 18.00 $ 10.50 $4.50 $ 12.00 $9.00 $ 6.00 $ 3.00 $ 1.50 What incremental manufacturing cost will the company incur if it increases production from 10,000 to 10,001

    <p>33 (C)</p> Signup and view all the answers

    Ce.st Company relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows. Cost description Direct materials Direct laboura Variable manufacturing overead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions. Variable administrative expense Average cost per unit $ 18.00 $ 10.50 $4.50 $ 12.00 $9.00 $ 6.00 $ 3.00 $ 1.50 assume that 12,500 units are produced. What is the average fixed manufacturing cost per unit produced?

    <p>9.6 (A)</p> Signup and view all the answers

    Ce.st Company relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows. Cost description Direct materials Direct laboura Variable manufacturing overead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions. Variable administrative expense Average cost per unit $ 18.00 $ 10.50 $4.50 $ 12.00 $9.00 $ 6.00 $ 3.00 $ 1.50 assume that 8,000 units are produced. What is the unit manufacturing overhead?

    <p>19,5 (C)</p> Signup and view all the answers

    Ce.st Company relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows. Cost description Direct materials Direct laboura Variable manufacturing overead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions. Variable administrative expense Average cost per unit $ 18.00 $ 10.50 $4.50 $ 12.00 $9.00 $ 6.00 $ 3.00 $ 1.50 assume that 8,000 units are produced and sold. What is the total amount of variable cost related to the units produced and sold?

    <p>300,000 (A)</p> Signup and view all the answers

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