c AO T W Pc S IAP AJL Name ct Co Section z rc cid 9 r r BMGT 221 cid 9 Exam Simulation cid 9 Chap 7 MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question obotics Company sells basic kits to build robots for 112 each The variable costs for cid 9 1 each kit are 72 The total contribution margin for 20 kits is 800 cid 9 B 3 680 cid 9 C 1 440 cid 9 D 2 240 40 cid 9 LQg2 cid 9 OO A1following information for the past year for the Lambert Company has been provided 2 4 Fixed costs Manufacturing Marketing Administrative Variable costs Manufacturing Marketing Administrative 150 000 28 000 21 000 132 000 32 000 43 000 During the year the Lambert Company produced and sold 50 000 units of product at a sale price of 10 00 per unit There was no beginning inventory of product at the beginning of the year What is the contribution margin for the year cid 9 50 000 UO 5 001000 I C cid 9 p293 000 cid 9 B 301 000 cid 9 C 94 000 cid 9 D 500 000 e formula used to find the number of units that need to be sold in order to breakeven or 3 generate a target profit is A fixed expenses operating income contribution margin ratio B contribution margin ratio fixed expenses operating income fixed expenses operating income contribution margin per unit D contribution margin per unit fixed expenses operating income iven breakeven sales in units of 56 000 and a unit contribution margin of 6 how many units must be sold to reach a target operating income of 24 000 4 4 91 000 B 144 000 cid 9 C 52 000 D 4 000 3 ixc LL DOD 5 OOO Li 3E 000 hich of the following statements is TRUE if the sales price per unit increases while the variable cost per unit and total fixed costs remain constant cid 9 o VC lO 2b A The contribution margin decreases and the breakeven point decreases B The contribution margin increases and the breakeven point increases c 10 40 The contribution margin increases and the breakeven point decreases I K The contribution margin decreases and the breakeven point increases ich of the following statements is TRUE if the fixed costs increase while the sales price per unit and variable costs per unit remain constant cid 9 The contribution margin stays the same and the breakeven point increases J tO 1 00 B The contribution margin increases and the breakeven point decreases cid 9 C The contribution margin decreases and the breakeven point increases cid 9 D The contribution margin stays the same and the breakeven point decreases 6 lo 2 9 7 odson Company sells two products Quartz models and Wind up models McDaniel cid 9 predicts that it will sell 7 200 Quartz models and 5 600 Wind up models in the next period The unit contribution margins for Quartz models and Wind up models are 31 and 63 respectively What is the weighted average unit contribution margin 9xI i j A 360 00 cid 9 B 23 14 cid 9 c cid 9 D 0 02 7200 1 cid 9 i 17 cid 9 L1 cory Enterprises sells two products larges and smalls Larges sell for 120 per unit with cid 9 variable costs of 80 per unit Smalls sell for 30 per unit with variable costs of 10 per unit Total fixed costs for the company are 40 000 Gregory Enterprises typically sells three larges for every two smalls What is the breakeven point in total units cid 9 8 f 20 cid 9 3 t A 2 50unit s C 2 500 units cid 9 D 294 units r BQ 25 units l 0 cid 9 x o 0 cid 9 0 cid 9 cid 9 CV 4 90 Q Wynn Technology USB drives sell for 15 per drive Unit variable expenses total 9 The breakeven sales in units is 2 000 and budgeted sales in units is 4 200 What is the margin of safety in dollars cid 9 cid 9 C 00 A 147 cid 9 B 93 000 cid 9 C 2 200 15 X OtO So1 Poo D 33 000 10 Julia s Catering has a monthly target operating income of 6 000 Variable expenses are 40 cid 9 of sales and monthly fixed expenses are 3 600 What is Julia s operating leverage factor at the target level of operating income 10 A 2 67 cid 9 B 0 40 cid 9 C 0 63 cid 9 OILPOO Thoo cid 9 CED Cor2 J 2 tv e I ct i Vn cid 9 V C 0 M cid 9 cid 9 cid 9 cid 9
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