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##### Accounting Multiple Choice Questions

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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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Answer;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;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.;Question;Edmonco;Company produced and sold 45,000 units of a single product last year, with the;following results;Answer;79. Edmonco's operating leverage factor was;A. 4.B. 5.;C. 6.;D. 7.;E. 8.;Question;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.;Question;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.;Question;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.;Question;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#42151 | Written in 18-Jul-2015

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