14. Last mosth, tales revense was LE 100000 , and total costs were LE 90000 (including fixed Cint L.E 30 000), If the management is going to increase sales revenue by LE 1000, the profit will inerease by.... A. LE 1000 B. LF 400 C. LE 600 D. None of these 23. If the sales price per unit is LE. 100 , variable cost per unit is LE 60, targeted net income is 10% of sales, and total fixed costs are L.E 30000 , the number of units that must be sold are 1 A. 500 units B. 1000 units C. 900 units D. Nione of these 24. If the per-unit selling price is LE 50, total fixed costs is LE 120000 , the sales volume in pounds which achieves a net income of LE 180000 is L.E 1000000 (one million). The unit variable cost is A. LE 15 B. LE 30 C. LE. 35 D. None of these 25. The margin of safety in the FC Company is LE 50000 . If the company's sales are 150000 and its variable expenses are LE90 000 , its fixed expenses must be: A. LE 10000 B. LE 20000 C. LE 30000 D. None of these 26. Given a break-even point of 50000 units, the per unit fixed cost at the break-even point of 3 LE and a contribution margin ratio of 30%, the total sales value that must be sold to reach a net prefit of 10% of sales are: . A.LE 750000 B. LE 570000 C. LE 57000 D. None of these 27. Sales for a retail store were L.E 250000 . Net operating income totaled L.E 30000 and cost of goods sold (all variable) was LE 110 000. If the contribution margin was LE 100000 , total variable selling and administrative expenses must have been: A. LE 70000 B. LE 40000 C. LE 100000 D. None of these 28. ABC Company's gross margin exceeded its contribution margin by L.E 25 000. If sales totaled LE 175000 when net operating income equaled L.E 20000 and total selling and administrative expenses equaled L.E 55 000, then the contribution margin equaled: A. LE 75000 B. 80000 C. 50000 D. None of these The following data has been assembled for ARC Comnany Ilea tho hiuh_lnw method. 29. The cost function is stated as : A. Y=12.8(X)+180250LE B. Y=LE180000+12.7(X) C. Y=12.7(X)+180250LE D. None of these 30. The total cost at an operating level of 20000 units is : For each of the following statements, if the statement is true select (A) and if any part of the statement is false select (B): 1. The sales volume in pounds necessary to reach a target profit is determined by dividing the target profit by the contribution margin per unit. (F) 2. Performance reports are the main device for management planning. (F) 3. A mixed cost can be expressed as a constant rate per period and a fixed amount per unit of production. (F) 4. When analyzing cost, think of fixed costs on a per-unit basis. (F) 5. A company can lower its break-even point in different ways EXCEPT by reducing its total fixed costs. (F) 6. If the variable cost per unit increases and all other factors remain constant, the Contribution Margin ratios will decrease. (T) 7. If fixed costs doubled, and contribution margin per unit was cut in half, then the breakeven point would be cut in half. (F) 8. As sales volume in units increases and all other relationships remain constant, break-even point decreases. (F) 9. Decisions within an organization are often divide into two types: (1) planning decisions and (2) controlling decisions. (T) 10. If the variable costs per unit increased and all other factors remain constant, the breakeven point decreases. (F) 11. The following costs are all examples of committed fixed costs: depreciation on buildings, advertising. insurance, and management development and training. (F) 12. An operating budget is the major part of the master budget that focuses on the balance sheet and supporting schedules. (F) The Second Section: MULTIPLE CHOICE For each of the following statements, select the correct choice: 13. If selling price per unit is LE 40, variable cost per unit is LE 24, and fixed cost per unit is LE 12, then decreasing in number of units by one hundred units will lead to decrease profit by A. LE 2800 B. LE 1600 C. LE 400 D. None of these