Calculate the break-even point in dollars from the following information. Selling price per unit is $50, variable costs per unit are $30 and fixed costs for the year are $25 000

a.$1 250

b.Unable to be determined from the information given

c.$83 333

d.$41 667

e.$62 500

Question 2

2. If McLeod Ltd's selling price is $50 per unit, fixed costs are $499 800, and the contribution margin ratio is 0.34. The break-even in sales dollars (rounded to the nearest dollar) is:
3. a.$499 800
4. b.$169 932
5. c.$1 470 000
6. d.Unable to be determined from the information given
7. e.$757 273

Question 3

2. Which of the following can be a cost object?
3. a.A department
4. b.All of the options can be cost objects
5. c.A product
6. d.A geographic location
7. e.A service unit

Question 4

2. If ROA increased from 8.0% to 8.5% it may be because
4. a.The company increases total assets
5. b.The company increases sales revenue
6. c.The company increases total expenses
7. d.The company increases share capital
8. e.The company increases its liabilities

Question 5

2. If Debt Ratio decreased from 36% to 33%, it means,
3. a.financial risk decreases
4. b.leverage will not be affected
5. c.leverage increases
6. d.financial risk increases
7. e.the company may have increased its long-term debt

Question 6

2. Mermaid Enterprises, a manufacturing firm, is considering investing $420,000 in a new machine.It is estimated that the net cash flow per year will be $150,000 and the machine will have a 5-year useful life. The residual value expected at the end of the 5-year life is $80,000.The accounting rate of return is:
3. a.19.5%
4. b.60%
5. c.Unable to be determined from the information given
6. d.35.7%
7. e. 32.8%

Question 7

2. Which of the following statements about vertical analysis is correct:
3. a.it compares numbers reported on the financial statements in the current period with those from the previous period
4. b.it compares numbers reported on a financial statement to another number on the same statement
5. c.it determines the profitability of the entity
6. d.it compares ratios from different financial statements
7. e.it requires a minimum of 3 years of data to provide meaningful analysis

Question 8

2. Holland Ltd made these estimates for the six months ending 31 December.
3. Cash receipts from services provided
4. $60 000
5. Cash payments for expenses
6. 40 000
7. Payment for purchase of equipment
8. 18 500
9. Depreciation of equipment
10. 4 000
11. Borrowings from the bank
12. 15 000
13. Rent paid in advance
14. 3 000
15. The cash balance at 1 July is $13 000. The estimated cash balance at 31 December is:
16. a.deficit of $15 000
17. b.surplus of $33 000
18. c.surplus of $13 500
19. d.surplus of $26 500
20. e.surplus of $11 000