Managerial Accounting

1. Which of the following is an assumption that is NOT made in roughly cost-volume-profit calculations? 
A. Selling price, inconstant expense per social unit, and unconquerable expense per unit do not change throughout the relevant range.
B.  there is no change in inventory levels.
C. In a multi-product company, the sales mix does not change.
D. The selling price is constant.

2. A company change magnituded the selling price for its product from $5 to $6 per unit when total fixed expenses increased from $100,000 to $200,000 and variable expense per unit remained unchanged. How would these changes affect the break-even point? 
A. The break-even point in units would increase.
B. The break-even point in units would decrease.
C. The break-even point in units would remain unchanged.
D. The heart cannot be determined from the information given.

3. Litke Corporation, a company that produces and sells a single product, has provided its persona format income statement for February.

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If the company sells 5,100 units, its exonerate operating income should be closest to: 
A. $15,600
B. $11,700
C. $8,400
D. $14,733

Contribution margin is 70,200/129,000= .5442

gross sales should be 129,000/5400 *5100= 121,833.33

So contribution margin should be 121,833.33* .5442= 66,301.



70

Subtracting fixed costs of 54,600 we have 11,702 so b)

4. If a company increases publicise by $500,000, this exit cause clear up operating income to increase if the resulting increase in sales dollars is greater than: 
A. $500,000.
B. $500,000 divided by the percentage increase in advertising.
C. $500,000 divided by the microscope stage of operating leverage.
D. $500,000 divided by the contribution margin ratio.

5. at one time the break-even point is reached: 
A. the total contribution margin changes from negative to positive.
B. net operating income will increase by the unit contribution margin for each additional item sold.
C. variable expenses will remain constant in total.
D. the contribution margin ratio...If you requisite to get a full essay, order it on our website: Orderessay



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