65, Chisholm Co. has a contribution margin ratio of 40% and a breakeven point of $200,000 in sales. If the firm reports net income of $50,000 after taxes of 50%, what were total sales for the year? a) $450,000 b) $466,667 c) $500,000 d) $700,000 Answer: a Difficulty: Medium Learning Objective: Apply CVP calculations for a single CPA: Management Accounting 66. If the total contribution margin decreases and fixed costs do not change, pre-tax income a) Decreases by an equal amount b) Increases by an equal amount c) Does not change d) Increases by some other amount Answer: a Difficulty: Medium Learning Objective: Apply CVP calculations for a single CPA: Management Accounting 67. Data extracted from the accounting information system of Turner Corporation produced the following graph. The equation of the dashed line is y$25x, the equation of the solid line is y $200 +$5x 600 $500 400 $300 200 $100 0 Which of the following terms best describes the graph? a) Learning curve graph b) Operating leverage graph 68. Data extracted from the accounting information system of Turner Corporation produced the following graph. The equation of the dashed line is y $25x; the equation of the solid line is y $200 $5x. 600 $500 400 $300 200 $100 The solid line represents: a) Total variable costs b) Total fixed costs c) Total costs d) Total revenues Answer: C Difficulty: Easy Learning Objective: Apply CVP calculations for a single CPA: Management Accounting 69. Data extracted from the accounting information system of Turner Corporation produced the following graph. The equation of the dashed line is y = $25: the equation of the solid line is y $200 $5x 400 $200 $100 The dashed line represents: a) Total variable costs b) Total fixed costs c) Total costs d) Total revenues Answer: d