Chapter 3 Costos
3 costoReview Questions:
CHAPTER 3; Cost Volume Profit
True/False
1.
Determining the number of units that must be produced in order to generate enough profit to cover total fixed costs is one reason for using a break-even analysis.
2.
An expected value is the w eighted average of the outcomes, based on the percentage combinations of the incomes.
3.
Which of the following statements about net income (NI) is TRUE?
a.
b.
NI = operating income plus income taxes.
NI = operating income plus operating costs.
c.
d.
NI = operating income less income taxes.
NI = the absolute (positive) value of income taxes less operating income. 3. paying 25% of her revenue made at the convention.
What would the indifference point be between option 1 and option 2?
a. 500 units; b. 400 units; c. 300 units; d. 200 units
7.
The following information is for Winnie Company:
P roduct A:
Product B:
Revenue
$4.00
$6.00
Variable Cost
$1.00
$2.00
Total fixed costs are $40,000.
What is the break-even point, assuming the sales mix consists of two units of
Product A and one unit of Product B?
a.
b.
c.
d.
2,000 units of B and 4,000 units of A
2,025 units of B and 4,050 units of A
4,025 units of B and 8,050 units of A
4,000 units of B and 8,000 units of A
8.
What is the operating income, assuming actual sales are 300,000 units, and the sales mix is one unit of Product A and two units of Product B?
a. $ 100,000; b. $1,040,000; c. $1,060,000; d. $1,100,000
4.
a.
b.
c.
d.
The break-even point in CVP analysis is defined as the point where output units equal input units. the point where unit contribution margin equals fixed costs divided by number of break-even units. where revenues less variable costs equal operating income. where the unit contribution margin equals the selling price less the unit variable cost.
5.
What would be target operating income when fixed costs equal
$6,000, unit contribution margin equals $40.00,
CHAPTER 3; Cost Volume Profit
True/False
1.
Determining the number of units that must be produced in order to generate enough profit to cover total fixed costs is one reason for using a break-even analysis.
2.
An expected value is the w eighted average of the outcomes, based on the percentage combinations of the incomes.
3.
Which of the following statements about net income (NI) is TRUE?
a.
b.
NI = operating income plus income taxes.
NI = operating income plus operating costs.
c.
d.
NI = operating income less income taxes.
NI = the absolute (positive) value of income taxes less operating income. 3. paying 25% of her revenue made at the convention.
What would the indifference point be between option 1 and option 2?
a. 500 units; b. 400 units; c. 300 units; d. 200 units
7.
The following information is for Winnie Company:
P roduct A:
Product B:
Revenue
$4.00
$6.00
Variable Cost
$1.00
$2.00
Total fixed costs are $40,000.
What is the break-even point, assuming the sales mix consists of two units of
Product A and one unit of Product B?
a.
b.
c.
d.
2,000 units of B and 4,000 units of A
2,025 units of B and 4,050 units of A
4,025 units of B and 8,050 units of A
4,000 units of B and 8,000 units of A
8.
What is the operating income, assuming actual sales are 300,000 units, and the sales mix is one unit of Product A and two units of Product B?
a. $ 100,000; b. $1,040,000; c. $1,060,000; d. $1,100,000
4.
a.
b.
c.
d.
The break-even point in CVP analysis is defined as the point where output units equal input units. the point where unit contribution margin equals fixed costs divided by number of break-even units. where revenues less variable costs equal operating income. where the unit contribution margin equals the selling price less the unit variable cost.
5.
What would be target operating income when fixed costs equal
$6,000, unit contribution margin equals $40.00,