Which action will decrease a company's break-even point?

Select one:

A.reducing total fixed costs

B.increasing variable cost per unit

C.decreasing the selling price per unit

D.decreasing contribution margin per unit

Johnson Company produces dolls. Each doll sells for $20.00. Variable costs per unit are $14.00 and total fixed costs for the period are $300,000. What is the break-even volume in dollars?

Select one:

A.$1,000,000

B.$1,450,000

C.$621,429

D.$50,000

Financial reports prepared by financial accountants focus on ________. Financial reports prepared by management accountants focus on ________.

Select one:

A.segments of the organization such as departments and divisions; segments of the organization such as departments and divisions

B.the organization as a whole; the organization as a whole

C.segments of the organization such as departments and divisions; the organization as a whole

D.the organization as a whole; segments of the organization such as departments and divisions

Each month Fig Company produces 11,000 units of a product that sells for $18 per unit, and has variable costs of $12 per unit. Total fixed costs for the month are $77,000. A special order is received for 5,000 units at a price of $14 per unit. Fig Company has adequate capacity for the special order. If Fig Company accepts the special order, what is the profit to Fig Company from the special order?

Select one:

A.$0

B.$22,000

C.$99,000

D.$10,000

According to the Financial Executive, which of the following situations create pressures for unethical behavior?

Select one:

A.ignoring small lapses in ethical behavior

B.emphasis on long-term results

C.upward trends in the economy

D.rising stock prices

Central Industries has three product lines: A, B and C. The following information is available:

Product A

Product B

Product C

Sales

$100,000

$90,000

$44,000

Variable costs

76,000

48,000

35,000

Contribution margin

24,000

42,000

9,000

Avoidable fixed costs

9,000

18,000

3,000

Unavoidable fixed costs

6,000

9,000

7,700

Operating income(loss)

$9,000

$15,000

$(1,700)

Central Industries is thinking about dropping Product C because it is reporting a loss. Assume Central Industries drops Product C and does not replace it. What will happen to operating income?

Select one:

A.decrease by $9,000

B.decrease by $6,000

C.increase by $2,400

D.increase by $600

Assume the sales price is $100 per unit and the variable cost is $75 per unit. Total fixed costs are $150,000. Then the break-even volume in dollar sales is ________.

Select one:

A.$200,000

B.$1,500

C.$150,000

D.$600,000

Step Company has total variable costs of 80% of total revenues and fixed costs of $20 million per year. What is the break-even point expressed in total revenue dollars?

Select one:

A.$20 million

B.$12.5 million

C.$10 million

D.$100 millio

Here is a statement from the Statement of Ethical Professional Practice drafted by the Institute of Management Accountants: "Each member has a responsibility to perform professional duties in accordance with relevant laws, regulations and technical standards." This statement comes from the ________ standard.

Select one:

A.credibility

B.confidentiality

C.professional responsibility

D.competence

This is a statement from the IMA's Statement of Ethical Professional Practice: "Each member has a responsibility to communicate information fairly and objectively." This statement comes from the ________ standard.

Select one:

A.competence

B.credibility

C.integrity

D.confidentiality