Bumble Inc. has a contribution margin ratio of 45%. This month, profit before tax was $40,000 and fixed cost were $50,000. How much was the company's sales revenue? (Rounding could cause your answerto not be exactly what is shown below, so choose the closest answer)

A.

$200,000

B.

$40,500

C.

$90,000

D.

$111,111

If the selling division cannot produce all the product required by a buying division without sacrificing sales to its current customers, when negotiating a transfer price, the highest price the buyer will be willing to pay (assuming he is currently buying his product in the market) is the _____________ price, while the lowest price the seller will be willing to accept is the _______________ cost.

Lyman company has the opportunity to increase annual revenues $100,000 by selling to a new, riskier group of customers. The bad debt expense is expected to be 15% of revenues (on these additional sales only) and collection costs will be 5% of revenues (on these additional sales only). The company?s manufacturing and selling expenses are 70% of revenues on all sales and its effective tax rate is 40%. If Lyman should accept this opportunity, the company will increase its after-tax profits by

A.	$10,000
B.	$9,000
C.	$18,000
D.	$6,000

Cost Volume Profit Analysis is used by

A.	For-profit organizations
B.	All of the above
C.	Nonprofit organizations
D.	Service organizations

Lyman company has the opportunity to increase annual revenues $100,000 by selling to a new, riskier group of customers. The bad debt expense is expected to be 15% of revenues (on theseadditional sales only) and collection costs will be 5% of revenues (on these additional sales only). The company?s manufacturing and selling expenses are 70% of revenues on all sales and its effective tax rate is 40%. If Lyman should accept this opportunity, the company will increase its after-tax profits by

Bumble Inc. has a contribution margin ratio of 45%. This month, profit before tax was $40,000 and fixed cost were $50,000. How much was the company's sales revenue? (Rounding could cause your answerto not be exactly what is shown below, so choose the closest answer) A. $200,000 B. $40,500 C. $90,000 D. $111,111 If the selling division cannot produce all the product required by a buying division without sacrificing sales to its current customers, when negotiating a transfer price, the highest price the buyer will be willing to pay (assuming he is currently buying his product in the market) is the _____________ price, while the lowest price the seller will be willing to accept is the _______________ cost. Lyman company has the opportunity to increase annual revenues $100,000 by selling to a new, riskier group of customers. The bad debt expense is expected to be 15% of revenues (on these additional sales only) and collection costs will be 5% of revenues (on these additional sales only). The company's manufacturing and selling expenses are 70% of revenues on all sales and its effective tax rate is 40%. If Lyman should accept this opportunity, the company will increase its after-tax profits by A . $10,000 B. $9,00 0 C. $18,0 00 D. $6,00 0 Cost Volume Profit Analysis is used by A . For-profit organizations B . C . All of the above D . Service organizati ons Nonprofit organizations Which assumption of Cost-Volume-Profit Analysis cannot be found in our text but was given to us as the 6th assumption to add to the list of the 5 assumptions that were listed in the text? A Production and sales are equal, so that inventory levels remain . constant B Multiproduct companies maintain a constant sales mix . C . D . There is only one cost driver either units or sales dollars All costs can be described as either fixed or variable Sondi, Inc. has two divisions, Pickens and Sobo. Following is the income statement for the previous year: Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin Pickins $ 600,000 Sobo $ 400,000 Total $ 1,000,000 195,000 250,000 445,000 405,000 150,000 555,000 175,000 $ 230,000 170,000 $ (20,000) 345,000 $ 210,000 Of the total fixed costs, $300,000 are committed fixed costs that are allocated equally between the divisions. How much did the Sobo division incur in direct fixed costs? A $300,000 . B . C . D . $150,000 $20,000 $170,000 Flipper, Inc. must perform maintenance on its production machinery after every 10,000 units produced. Production varies between 12,000 and 30,000 units per week. The cost of this maintenance would be classified as a A Variable . cost B . C . D . Step cost Fixed cost Mixed cost ersey Inc. used the high - low method to estimate that it is fixed costs are $210,000. At it is low level of activity, 100,000 units, total average cost was $2.60 per unit. What would Jersey predict its average total cost per unit to be when production is 200,000 units? A $1.5 . 5 B $5.2 . 0 C $1.0 . 5 D $2.6 . 0 2 points QUESTION 31 Amelia Enterprises has presented the following information for the past three months operations: Averag e Month Units Cost June 2400 $10.00 July 4800 $6.00 August6000 $5.20 a. Using the high-low method, calculate the fixed cost per month b. Calculate the variable cost per unit. c. What would total costs be for a month with 5,000 units produced? 6 points QUESTION 32 Corp produces three products, and is currently facing a labor shortage - only 3,000 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows: Andrill PRODUCT ==================> Selling Price Variable Cost Per Unit Direct Labor Hours Per Unit Units Demanded a. b. c. A B C $50.00 $35.00 1.5 1000 $30.00 $10.00 3 2000 $40.00 $30.00 2 500 In what order should Andrill prioritize production of the products? List the letter of the product in the order of priority. How many of each product should be produced (assuming all units will be sold during the period) during the labor shortage to maximize profit? What is the total contribution margin if Andrill prioritizes production according to its limited resources? 6 points QUESTION 33 ___________ leverage refers to the extent that an organization's costs are fixed. 2 points QUESTION 34 If sales revenue doubles and is still within the relevant range, then fixed cost will A Decrease on a per . unit basis B Increase in total . C Increase on a per unit . basis D Decrease in total . 2 points QUESTION 35 EXTRA CREDIT: Jackson, Inc. currently sells 12,000 units of its product per year for $100 each. Variable costs total $75 per unit. Jackson's manager believes that if a new machine is leased for $147,000 per year, modifications can be made to the product that will increase its retail value. These modifications will increase variable costs by $20 per unit, but Jackson is hoping to sell the modified units for $130 each. a. Should Jackson modify the units or sell them as is? How much will the decision affect profit? b. What is the least Jackson could charge for the modified units to make it worthwhile to modify them? c. The leasing company is willing to negotiate the price of the machine lease. What is the most Jackson would be willing to pay to lease the machine if they plan to charge $130 for the modified units? Round your answers to the nearest whole dollar amount. 6 points QUESTION 36 Ajax Company, which uses the high - low method, had total average cost per unit of $10 at its lowest level of activity when sales equal 10,000 units and total average cost per unit of $6.50 at its highest level of activity when sales equal 24,000 units. Ajax would estimate fixed cost to be A $8.25 . B $100,0 . 00 C $60,00 . 0 D $16.50 . 2 points QUESTION 37 Which of the following is a fixed cost when we are working within the relevant range? A A cost that is $40.00 per unit when production is 50,000 units, and . $40.00 per unit when production is 80,000 units. B A cost that is $20.00 per unit when production is 50,000 units, and . $12.50 per unit when production is 80,000 units. C A cost that is $20.00 per unit when production is 50,000 units, and . $40.00 per unit when production is 80,000 units D A cost that is $20.00 per unit when production is 50,000 units, and . $20.00 per unit when production is 80,000 units. 2 points QUESTION 38 Monroe has received a special order for 10,000 units of its product. The product normally sells for $20 and has the following per unit manufacturing costs: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Cost Per Unit 6 3 2 6 17 Assume that Monroe has sufficient capacity to fill the order. What price should Monroe charge to make a $10,000 incremental profit? 2 points QUESTION 39 Cost relationships that are curvilinear in the economic model of costs may be analyzed linearly by considering only A . B . C . D . Relevant fixed cost. Fixed and semi-variable costs. A relevant range of volume. Relevant variable cost. 2 points QUESTION 40 The Prestigious Widget Company currently has just begun producing an award winning widget that is beyond words. This will be their first quarter producing it so they have some goals they want to meet but are very conservative in their projections. The management team has been given the task of producing a budget for this product by the President Mr. Smith. Mr. Smith knows conservatively that the product can provide for next quarter a profit, after tax, of $160,000. The product will be sold for $25 each. The variable cost per unit is $15 and $225,000 of fixed costs have been allocated to it. The projected tax rate for the quarter is 36%. How many units need to be produced and sold for the product to produce the $160,000 after tax profit? Round your answer up to the next whole dollar since you cannot possibly sell a fraction of a widget. 6 points QUESTION 41 What is the simplist form of costvolume-profit analysis? 2 points QUESTION 42 A . B . C . D . Return on investment can be calculated as ROI = sales revenue/average invested assets ROI = operating income/average invested assets ROI = average invested assets/sales revenue ROI = operating income/sales revenue 2 points QUESTION 43 be An example of a discretionary fixed cost would A Advertising for the products . sold B . C . Rent on the division accounting office Property tax for the general office D Depreciation on the plant . facilities 2 points QUESTION 44 Cost volume profit analysis is a key factor in many decisions, including choice of product lines, pricing of products, marketing strategy, and use of productive facilities. A calculation using a CVP analysis is the breakeven point. Once the breakeven point has been reached, operating income will increase by the A Variable cost per unit for each additional unit sold. . B . C . D . Gross margin per unit for each additional unit sold. Contribution margin per unit for each additional unit sold. Sales price per unit for each additional unit sold. 2 points QUESTION 45 Xenon has received a special order for 100 units of its product at a special price of $1,500. The product normally sells for $2,000 and has the following per unit manufacturing costs: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Unit Cost $600 300 400 500 $1800 Assume that Xenon has sufficient capacity to fill the order without harming normal production and sales. If Xenon accepts the order, what effect will the order have on the company's short-term profit? 3. 4. A . $30,000 decrease B . C . $20,000 increase D . $30,000 increase $20,000 decrease 2 points QUESTION 46 Dickinson, Inc uses a balanced scorecard. One of the measures on the scorecard is the average education level of the firm's managers. Which balanced scorecard perspective would this measure most likely fit into? A Financial perspective . B . C . D . Internal business perspective Customer perspective Learning and growth perspective 2 points Click Save and Submit to save and submit. Click Save All Answers to save all answers. Bumble Inc. has a contribution margin ratio of 45%. This month, profit before tax was $40,000 and fixed cost were $50,000. How much was the company's sales revenue? (Rounding could cause your answerto not be exactly what is shown below, so choose the closest answer) A. $200,000 B. $40,500 C. $90,000 D. $111,111 If the selling division cannot produce all the product required by a buying division without sacrificing sales to its current customers, when negotiating a transfer price, the highest price the buyer will be willing to pay (assuming he is currently buying his product in the market) is the _____________ price, while the lowest price the seller will be willing to accept is the _______________ cost. Lyman company has the opportunity to increase annual revenues $100,000 by selling to a new, riskier group of customers. The bad debt expense is expected to be 15% of revenues (on these additional sales only) and collection costs will be 5% of revenues (on these additional sales only). The company's manufacturing and selling expenses are 70% of revenues on all sales and its effective tax rate is 40%. If Lyman should accept this opportunity, the company will increase its after-tax profits by A . $10,000 B. $9,00 0 C. $18,0 00 D. $6,00 0 Cost Volume Profit Analysis is used by A . For-profit organizations B . C . All of the above D . Service organizati ons Nonprofit organizations Which assumption of Cost-Volume-Profit Analysis cannot be found in our text but was given to us as the 6th assumption to add to the list of the 5 assumptions that were listed in the text? A Production and sales are equal, so that inventory levels remain . constant B Multiproduct companies maintain a constant sales mix . C . D . There is only one cost driver either units or sales dollars All costs can be described as either fixed or variable Sondi, Inc. has two divisions, Pickens and Sobo. Following is the income statement for the previous year: Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin Pickins $ 600,000 Sobo $ 400,000 Total $ 1,000,000 195,000 250,000 445,000 405,000 150,000 555,000 175,000 $ 230,000 170,000 $ (20,000) 345,000 $ 210,000 Of the total fixed costs, $300,000 are committed fixed costs that are allocated equally between the divisions. How much did the Sobo division incur in direct fixed costs? A $300,000 . B . C . D . $150,000 $20,000 $170,000 Flipper, Inc. must perform maintenance on its production machinery after every 10,000 units produced. Production varies between 12,000 and 30,000 units per week. The cost of this maintenance would be classified as a A Variable . cost B . C . D . Step cost Fixed cost Mixed cost ersey Inc. used the high - low method to estimate that it is fixed costs are $210,000. At it is low level of activity, 100,000 units, total average cost was $2.60 per unit. What would Jersey predict its average total cost per unit to be when production is 200,000 units? A $1.5 . 5 B $5.2 . 0 C $1.0 . 5 D $2.6 . 0 2 points QUESTION 31 Amelia Enterprises has presented the following information for the past three months operations: Averag e Month Units Cost June 2400 $10.00 July 4800 $6.00 August6000 $5.20 a. Using the high-low method, calculate the fixed cost per month b. Calculate the variable cost per unit. c. What would total costs be for a month with 5,000 units produced? 6 points QUESTION 32 Corp produces three products, and is currently facing a labor shortage - only 3,000 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows: Andrill PRODUCT ==================> Selling Price Variable Cost Per Unit Direct Labor Hours Per Unit Units Demanded a. b. c. A B C $50.00 $35.00 1.5 1000 $30.00 $10.00 3 2000 $40.00 $30.00 2 500 In what order should Andrill prioritize production of the products? List the letter of the product in the order of priority. How many of each product should be produced (assuming all units will be sold during the period) during the labor shortage to maximize profit? What is the total contribution margin if Andrill prioritizes production according to its limited resources? 6 points QUESTION 33 ___________ leverage refers to the extent that an organization's costs are fixed. 2 points QUESTION 34 If sales revenue doubles and is still within the relevant range, then fixed cost will A Decrease on a per . unit basis B Increase in total . C Increase on a per unit . basis D Decrease in total . 2 points QUESTION 35 EXTRA CREDIT: Jackson, Inc. currently sells 12,000 units of its product per year for $100 each. Variable costs total $75 per unit. Jackson's manager believes that if a new machine is leased for $147,000 per year, modifications can be made to the product that will increase its retail value. These modifications will increase variable costs by $20 per unit, but Jackson is hoping to sell the modified units for $130 each. a. Should Jackson modify the units or sell them as is? How much will the decision affect profit? b. What is the least Jackson could charge for the modified units to make it worthwhile to modify them? c. The leasing company is willing to negotiate the price of the machine lease. What is the most Jackson would be willing to pay to lease the machine if they plan to charge $130 for the modified units? Round your answers to the nearest whole dollar amount. 6 points QUESTION 36 Ajax Company, which uses the high - low method, had total average cost per unit of $10 at its lowest level of activity when sales equal 10,000 units and total average cost per unit of $6.50 at its highest level of activity when sales equal 24,000 units. Ajax would estimate fixed cost to be A $8.25 . B $100,0 . 00 C $60,00 . 0 D $16.50 . 2 points QUESTION 37 Which of the following is a fixed cost when we are working within the relevant range? A A cost that is $40.00 per unit when production is 50,000 units, and . $40.00 per unit when production is 80,000 units. B A cost that is $20.00 per unit when production is 50,000 units, and . $12.50 per unit when production is 80,000 units. C A cost that is $20.00 per unit when production is 50,000 units, and . $40.00 per unit when production is 80,000 units D A cost that is $20.00 per unit when production is 50,000 units, and . $20.00 per unit when production is 80,000 units. 2 points QUESTION 38 Monroe has received a special order for 10,000 units of its product. The product normally sells for $20 and has the following per unit manufacturing costs: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Cost Per Unit 6 3 2 6 17 Assume that Monroe has sufficient capacity to fill the order. What price should Monroe charge to make a $10,000 incremental profit? 2 points QUESTION 39 Cost relationships that are curvilinear in the economic model of costs may be analyzed linearly by considering only A . B . C . D . Relevant fixed cost. Fixed and semi-variable costs. A relevant range of volume. Relevant variable cost. 2 points QUESTION 40 The Prestigious Widget Company currently has just begun producing an award winning widget that is beyond words. This will be their first quarter producing it so they have some goals they want to meet but are very conservative in their projections. The management team has been given the task of producing a budget for this product by the President Mr. Smith. Mr. Smith knows conservatively that the product can provide for next quarter a profit, after tax, of $160,000. The product will be sold for $25 each. The variable cost per unit is $15 and $225,000 of fixed costs have been allocated to it. The projected tax rate for the quarter is 36%. How many units need to be produced and sold for the product to produce the $160,000 after tax profit? Round your answer up to the next whole dollar since you cannot possibly sell a fraction of a widget. 6 points QUESTION 41 What is the simplist form of costvolume-profit analysis? 2 points QUESTION 42 A . B . C . D . Return on investment can be calculated as ROI = sales revenue/average invested assets ROI = operating income/average invested assets ROI = average invested assets/sales revenue ROI = operating income/sales revenue 2 points QUESTION 43 be An example of a discretionary fixed cost would A Advertising for the products . sold B . C . Rent on the division accounting office Property tax for the general office D Depreciation on the plant . facilities 2 points QUESTION 44 Cost volume profit analysis is a key factor in many decisions, including choice of product lines, pricing of products, marketing strategy, and use of productive facilities. A calculation using a CVP analysis is the breakeven point. Once the breakeven point has been reached, operating income will increase by the A Variable cost per unit for each additional unit sold. . B . C . D . Gross margin per unit for each additional unit sold. Contribution margin per unit for each additional unit sold. Sales price per unit for each additional unit sold. 2 points QUESTION 45 Xenon has received a special order for 100 units of its product at a special price of $1,500. The product normally sells for $2,000 and has the following per unit manufacturing costs: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Unit Cost $600 300 400 500 $1800 Assume that Xenon has sufficient capacity to fill the order without harming normal production and sales. If Xenon accepts the order, what effect will the order have on the company's short-term profit? 3. 4. A . $30,000 decrease B . C . $20,000 increase D . $30,000 increase $20,000 decrease 2 points QUESTION 46 Dickinson, Inc uses a balanced scorecard. One of the measures on the scorecard is the average education level of the firm's managers. Which balanced scorecard perspective would this measure most likely fit into? A Financial perspective . B . C . D . Internal business perspective Customer perspective Learning and growth perspective 2 points Click Save and Submit to save and submit. Click Save All Answers to save all answers