Sevad The following Information is provided for Southall Company Sales revenue $310,000 Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs 105,000 55,000 se, eee 45,000 What Is this company's contributlon margin? Mutiple Cholce $100,000 $55.000 $155.000 The excess of revenue over varlable costs Is referred to as: Multiple Choice gross margin manufacturing margin gross profit contribution margin Bruce Compary rocenty roducod Its advortsing budgot All other costs and revenues were unchanged Soloct the roponse that indicatos the impat of the advertung cus on the company's break even pont and mrgn of safuty Break-even Point Margin of Safety Increase A) Increase B) Decrease Decrease C) Increase Decrease D) Decrease Increase Muipie Choice Savc Select the corect statement regarding managerlal and financlal accounting Multiple Cholce Timelliness Is more Important In financlal accounting than In managerlal accounting Users of managenal accounting Information desire greater aggregation tman co users of financlal accounting Imnformation Financlal accounting is more nighiy regulated than managera accounting Both managertal and tinanciat accounting use economic and physicBi cata in acdition to inancal Cata Select the Incorect statement regarding the contribution margin income statement Multiple Cholce The contributlon margin approach requires that all costs be classined as fixed or vartable. Assuming no change in fixed costs, a $1 lIncrease in contributlon marglin will result In a $1 Increase In pront Contribution margin represents the amount avallable to cover product Costs and thereafter to provide profit The contricution margin approach for the Income statement is unacceptable for extermal reporting. Select the Incorect statement regarding cost structures Mutiple Cholce The more vartable cost. the higher the fluctuation In Income as sales nuctuate When sales change, the amount of the coresponding change in income is afected by the company's cost structure Faced with significant uncertainty about future revenues, a low leverage cost structure is preferable to a high leverage Cost structure Highly leveraged companles wl experience greaner pronts thancompanies less everaged when sales increase Which of the followng best represents a characteristic of managerlal accounting? Multiple Cholce O Information Is historically based and reponted annually. O Information Is based on estimates and is bounded by relevance and timellness. nformation Is characterlzed by rellability and objectivity information Is regulated by the Securities and Exchange Commission. Durina the curront vear, Winchester Company sold 80000 units at a seling price of $20 per unt. Vartable cost per unit was $15, and Wnchester's net income for the year was $40000 What was the amount of Wnchesters fed coa Mutiple Chgice $U60,000 $300.000 $400000 s0000
