#### Description of this paper

##### ACC 30 multiple choices

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solution

**Question**

Question;18. Sanderson;sells a single product for $50 that has a variable cost of $30. Fixed costs;amount to $5 per unit when anticipated sales targets are met. If the company;sells one unit in excess of its break-even volume, profit will be;A. $15.;B. $20.;C. $50.;D. an amount that cannot be derived based on the information presented.;E. an amount other than those in choices "A," "B," and;C", but one that can be derived based on the information presented.;19. At a;volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable;costs of $300,000, and fixed costs of $260,000. The company's contribution;margin per unit is;A. $22.;B. $28.;C. $35.;D. $37.;E. an amount other than those above.;20. At a volume of 20,000 units, Dries;reported sales revenues of $1,000,000, variable costs of $300,000, and fixed;costs of $260,000. The company's break-even point in units is;A. 7,027 (rounded).;B. 8,667 (rounded).;C. 9,286 (rounded).;D. 7,429 (rounded).;E. an amount other than those above.;21. A recent income statement;of Black Corporation reported the following data;If these data are based on the sale of 20,000 units, the contribution margin;per unit would be;A. $40.;B. $150.;C. $290.;D. $360.;E. an amount other than those above.;22. A recent income;statement of Black Corporation reported the following data;If these data are based on the sale of 20,000 units, the break-even point would;be;A. 9,565 units (rounded).;B. 11,000 units (rounded).;C. 7,586 units (rounded).;D. 14,667 units (rounded).;E. an amount other than those above.;23. A recent income statement of Suni Corporation;reported the following data;If these data are based on the sale of 20,000 units, the break-even point would;be;A. 7,500 units.;B. 11,628 units.;C. 12,500 units.;D. 33,333 units.;E. an amount other than those above.;24. A recent income;statement of Yang Corporation reported the following data;If these data are based on the sale of 5,000 units, the break-even sales would;be;A. $2,000,000.;B. $2,206,000.;C. $2,500,000.;D. $10,000,000.;E. an amount other than those above.;25. Lawson;Inc. sells a single product for $12. Variable costs are $8 per unit and fixed;costs total $360,000 at a volume level of 60,000 units. Assuming that fixed;costs do not change, Lawson's break-even point would be;A. 30,000 units.;B. 45,000 units.;C. 90,000 units.;D. negative because the company loses $2 on every unit sold.;E. a positive amount other than those given above.;26. Grey;Inc. sells a single product for $20. Variable costs are $8 per unit and fixed;costs total $120,000 at a volume level of 5,000 units. Assuming that fixed;costs do not change, Green's break-even sales would be;A. $160,000.;B. $200,000.;C. $300,000.;D. $480,000.;E. an amount other than those above.;27. Orion recently;reported sales revenues of $800,000, a total contribution margin of $300,000;and fixed costs of $180,000. If sales volume amounted to 10,000 units, the;company's variable cost per unit must have been;A. $12.;B. $32.;C. $50.;D. $92.;E. an amount other than those above.;28. Strayer;has a break-even point of 120,000 units. If the firm's sole product sells for;$40 and fixed costs total $480,000, the variable cost per unit must be;A. $4.;B. $36.;C. $44.;D. an amount that cannot be derived based on the information presented.;E. an amount other than those in choices "A," "B," and;C", but one that can be derived based on the information presented.;29. Ribco Co. makes and sells only one product. The unit contribution;margin is $6 and the break-even point in unit sales is 24,000. The company's;fixed costs are;A. $4,000.;B. $14,400.;C. $40,000.;D. $144,000.;E. an amount other than those above.;31. At a volume level of 500,000 units;Sullivan reported the following information;The company's contribution-margin ratio is closest to;A. 0.33.;B. 0.40.;C. 0.60.;D. 0.67.;E. an amount other than those above.;44. A recent income statement of;Dragonwood Corporation reported the following data;If the company desired to earn a target profit of $1,270,000, it would have to;sell;A. 5,778 units.;B. 8,600 units.;C. 10,160 units.;D. 11,908 units.;E. an amount other than those above.;45. Yellow;Dot, Inc. sells a single product for $10. Variable costs are $4 per unit and;fixed costs total $120,000 at a volume level of 10,000 units. What dollar sales;level would Yellow Dot have to achieve to earn a target profit of;$240,000?;A. $400,000.;B. $500,000.;C. $600,000.;D. $750,000.;E. $900,000.;Narchie sells a single product for $50.;Variable costs are 60% of the selling price, and the company has fixed costs;that amount to $400,000. Current sales total 16,000 units.;46. Narchie;A. will break-even by selling 8,000 units.;B. will break-even by selling 13,333 units.;C. will break-even by;selling 20,000 units.;D. will break-even by selling 1,000,000 units.;E. cannot break-even because it loses money on every unit sold.;47. Each unit that Narchie sells will;A. increase profit by $20.;B. increase profit by $30.;C. increase profit by $50.;D. increase profit by some other amount.;E. decrease profit by $5.;48. In order to;produce a target profit of $22,000, Narchie's dollar sales must total;A. $8,440.;B. $21,100.;C. $1,000,000.;D. $1,055,000.;E. an amount other than those above.;49. If;Narchie sells 24,000 units, its safety margin will be;A. $200,000.;B. $400,000.;C. $1,000,000.;D. $1,200,000.;E. an amount other than those above.;50. The difference;between budgeted sales revenue and break-even sales revenue is the;A. contribution margin.;B. contribution-margin ratio.;C. safety margin.;D. target net profit.;E. operating leverage.;51. Maxine's;budget for the upcoming year revealed the following figures;If the company's break-even sales total $750,000, Maxine's safety margin would;be;A. $(90,000).;B. $90,000.;C. $246,000.;D. $336,000.;E. $696,000.;52. Brooklyn sells a;single product to wholesalers. The company's budget for the upcoming year;revealed anticipated unit sales of 31,600, a selling price of $20, variable;cost per unit of $8, and total fixed costs of $360,000. Brooklyn's safety;margin in units is;A. (13,400).;B. 0.;C. 1,600.;D. 13,600.;E. an amount other than those above.;53. Brooklyn sells a single product to;wholesalers. The company's budget for the upcoming year revealed anticipated;unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and;total fixed costs of $360,000. If Brooklyn's unit sales are 200 units less than;anticipated, its breakeven point will;A. increase by $12 per unit sold.;B. decrease by $12 per unit sold.;C. increase by $8 per unit sold.;D. decrease by $8 per unit sold.;E. not change.;54. Brooklyn sells a single product to;wholesalers. The company's budget for the upcoming year revealed anticipated;unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and;total fixed costs of $360,000. If Brooklyn's unit sales are 300 units more than;anticipated, its break-even point will;A. increase by $12 per unit sold.;B. decrease by $12 per unit sold.;C. increase by $8 per unit sold.;D. decrease by $8 per unit sold.;E. not change.;56. Danielle sells a single product at $20 per;unit. The firm's most recent income statement revealed unit sales of 100,000;variable costs of $800,000, and fixed costs of $400,000. If a $4 drop in;selling price will boost unit sales volume by 20%, the company will;experience;A. no change in profit because a 20% drop in sales price is balanced by a;20% increase in volume.;B. an $80,000 drop in profit.;C. a $240,000 drop in;profit.;D. a $400,000 drop in profit.;E. a change in profit other than those above.;60. O'Dale;sells three products: R, S, and T. Budgeted information for the upcoming;accounting period follows.;The company's weighted-average unit contribution margin is;A. $3.00.;B. $3.55.;C. $4.00.;D. $19.35.;E. an amount other than those above.;Jamal & Co. makes and sells two types of;shoes, Plain and Fancy. Data concerning these products are as follows;Sixty percent of the unit sales are Plain, and annual fixed expenses are;$45,000.;62. The weighted-average unit contribution margin is;A. $4.80.;B. $9.00.;C. $9.25.;D. $17.00.;E. an amount other than those above.;63. Assuming;that the sales mix remains constant, the total number of units that Jamal must;sell to break even is;A. 2,432.;B. 2,647.;C. 4,737.;D. 5,000.;E. an amount other than those above.;64. Assuming;that the sales mix remains constant, the number of units of Plain that Jamal;must sell to break even is;A. 2,000.;B. 3,000.;C. 3,375.;D. 5,000.;E. 5,625.;65. Assuming that the sales mix;remains constant, the number of units of Fancy that Jamal must sell to break;even is;A. 2,000.;B. 3,000.;C. 3,375.;D. 5,000.;E. 5,625.;77. The following information relates to;Dazie Company;Dazie's operating leverage factor is closest to;A. 0.067.;B. 0.167.;C. 0.400.;D. 2.500.;E. 6.000.;78. The;following information relates to Paternus Company;If a manager at Paternus desired to determine the percentage impact on income;of a given percentage change in sales, the manager would multiply the;percentage increase/decrease in sales revenue by;A. 0.25.;B. 0.40.;C. 2.50.;D. 4.00.;E. 10.00.Edmonco Company produced and sold 45,000;units of a single product last year, with the following results;79. Edmonco's;operating leverage factor was;A. 4.;B. 5.;C. 6.;D. 7.;E. 8.;80. If;Edmonco's sales revenues increase 15%, what will be the percentage increase in;income before income taxes?;A. 15%.;B. 45%.;C. 60%.;D. 75%.;E. An amount other than those above.;83. A;company, subject to a 40% tax rate, desires to earn $500,000 of after-tax;income. How much should the firm add to fixed costs when figuring the sales;revenues necessary to produce this income level?;A. $200,000.;B. $300,000.;C. $500,000.;D. $833,333.;E. $1,250,000.84. Barrey, Inc. is subject to a 40%;income tax rate. The following data pertain to the period just ended when the;company produced and sold 45,000 units;How many units must Barrey sell to earn an after-tax profit of $180,000?;A. 42,000.;B. 45,000.;C. 51,000.;D. 61,000.;E. An amount other than those above.;85. Barrey;Inc. is subject to a 40% income tax rate. The following data pertain to the;period just ended when the company produced and sold 45,000 units;How many units must Barrey sell to earn an after-tax profit of $225,000?;A. 67,250.;B. 62,250.;C. 61,000.;D. 51,000.;E. An amount other than those above

Paper#39199 | Written in 18-Jul-2015

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