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##### GHA-week 4

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Question 1;0.2 out of 0.2 points;As production decreases, fixed costs per unit will;Answers: increase.;decrease.;remain the same.;either increase or decrease, depending on the variable cost.;Question 2;0.2 out of 0.2 points;At production levels below the breakeven point;Answers: fixed costs are recovered.;profit is negative.;variable costs are zero.;fixed costs are zero.;Question 3;0.2 out of 0.2 points;Breakeven analysis adjusted for a targeted profit;Answers: is a difficult computation that is not normally employed.;decreases the number of units required to breakeven.;is excellent for performing ?what-if? analysis.;is a poor basis for evaluating the profitability of a venture.;Question 4;0.2 out of 0.2 points;Campbell Inc. earned sales revenue of $150,000 in 2014. Campbell sells each unit of its product for $6.00 and has a 32 percent contribution margin. Campbell has fixed costs of $36,000.;What is Cambell?s breakeven point in sales dollars?;Answers: $205,714;$112,500;$150,000;$69,120;Question 5;0.2 out of 0.2 points;Excerpts from a cost-volume-profit analysis indicate fixed costs of $30,000, a variable cost per unit of $36, a selling price of $60, and a sales level of $125,000. The targeted level of profit must be;Answers: $20,000.;$50,000.;$95,000.;$75,000.;Question 6;0.2 out of 0.2 points;Excerpts from cost-volume-profit analysis of Nutshell Inc. indicate fixed costs of $85,000, a contribution margin per unit of $40, a selling price of $95, and a sales level of 4,000 units. What must be the targeted level of profit?;Answers: $116,875;$103,125;$85,000;$75,000;Question 7;0.2 out of 0.2 points;Edward Cheezer's Inc. makes and sells frozen four-cheese pizzas, New York?style. The expected selling price is $10 per pizza. The projected variable cost per pizza is $6. The estimated fixed costs per month are $10,000.;If 6,000 pizzas are sold in a given month and fixed costs increase by $5,000, the overall profit is;Answers: $15,000.;$19,000.;$20,000.;$9,000.;Question 8;0.2 out of 0.2 points;Edward Cheezer's Inc. makes and sells frozen four-cheese pizzas, New York?style. The expected selling price is $10 per pizza. The projected variable cost per pizza is $6. The estimated fixed costs per month are $10,000.;The number of pizzas that must be sold to obtain a monthly profit of $20,000 is;Answers: 2,000 pizzas.;5,000 pizzas.;2,500 pizzas.;7,500 pizzas.;Question 9;0.2 out of 0.2 points;Clark International produces designer watches. Each watch requires materials worth $14.50 and three direct labor hours. The company pays its production supervisor a salary of $500 per week. Hourly wage rate at Clark is $5. If 25 watches are produced in a week, what is the fixed cost per watch?;Answers: $14.50;$5.00;$20.00;$34.50;Question 10;0.2 out of 0.2 points;Cristy Lake Inc. sold goods worth $144,000 in 2014. It sells each unit for $5.50 and has a 30 percent contribution margin. The company?s fixed costs amount to $33,000.;Calculate Cristy?s breakeven point in units.;Answers: 43,200 units;9,900 units;26,182 units;20,000 units

Paper#80911 | Written in 18-Jul-2015

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