Quiz LMS chapter 3

Câu Hỏi 1
Astair, Inc. reported sales of $8,000,000 for the month and incurred variable expenses totaling
$5,600,000 and fixed expenses totaling $1,440,000. The company has no beginning or ending
inventories. A total of 80,000 units were produced and sold last month. What is the company's degree of
operating leverage?
Select one:

a.
0.12

b.
0.4

c.
3.3

d.
2.5

Phản hồi
The correct answer is: 2.5
Câu Hỏi 2
Astair, Inc. reported sales of $8,000,000 for the month and incurred variable expenses totaling
$5,600,000 and fixed expenses totaling $1,440,000. The company has no beginning or ending
inventories. A total of 80,000 units were produced and sold last month. What is the company's
margin of safety in dollars?
Select one:

a.
$480,000

b.
$2,400,000

c.
$3,520,000

d.
$3,200,000

Phản hồi
The correct answer is: $3,200,000
Câu Hỏi 3
Astair, Inc. reported sales of $8,000,000 for the month and incurred variable expenses totaling
$5,600,000 and fixed expenses totaling $1,440,000. The company has no beginning or ending
inventories. A total of 80,000 units were produced and sold last month. What is the company's break-
even in units?
Select one:

a.
48,000 units

b.
0 units

c.
80,000 units

d.
72,000 units
Phản hồi
The correct answer is: 48,000 units
Câu Hỏi 4
Astair, Inc. reported sales of $8,000,000 for the month and incurred variable expenses totaling
$5,600,000 and fixed expenses totaling $1,440,000. The company has no beginning or ending
inventories. A total of 80,000 units were produced and sold last month. How many units would the
company have to sell to achieve a desired profit of $1,200,000?
Select one:

a.
88,000

b.
150,000

c.
100,000

d.
106,668
Phản hồi
The correct answer is: 88,000
Câu Hỏi 5
Astair, Inc. reported sales of $8,000,000 for the month and incurred variable expenses totaling
$5,600,000 and fixed expenses totaling $1,440,000. The company has no beginning or ending
inventories. A total of 80,000 units were produced and sold last month. If sales increase by 200 units, how
much should net income increase?
Select one:

a.
$6,000

b.
$10,000

c.
$1,600

d.
$19,200
Phản hồi
The correct answer is: $6,000
Câu Hỏi 6
GardnerManufacturing Company produces a product that sells for $120. A selling commission of 10% of
the selling price is paid on each unit sold. Variable manufacturing costs are $60 per unit. Fixed
manufacturing costs are $20 per unit based on the current level of activity, and fixed selling and
administrative costs are $16 per unit. The contribution margin per unit is:
Select one:

a.
$104.

b.
$72.

c.
$48.

d.
$60.
Phản hồi
The correct answer is: $48.
Câu Hỏi 7
Grant Company sells a single product. The product has a selling price of $50 per unit and variable
expenses of 80% of sales. If the company's fixed expenses total $150,000 per year, then it will have a
break-even point in sales dollars of:
Select one:

a.
$187,500

b.
$15,000

c.
$3,750

d.
$750,000

Phản hồi
The correct answer is: $750,000
Câu Hỏi 8
Redford, Inc. has provided the following data:
Sales price $200/unit
Sales 6.000 units
Fixed cost $300.000
Variable cost $100/unit

If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and
all other factors remain the same, net income will:
Select one:

a.
increase by $420,000.

b.
increase by $60,000.

c.
increase by $120,000.
d.
decrease by $60,000.
Phản hồi
The correct answer is: increase by $120,000.
Câu Hỏi 9
Lange Company sells three products: X, Y and Z. Product X's unit contribution margin is higher than
Product Y's and Product Y's is higher than Products Z's. Which one of the following events is most
likely to increase the company's overall break-even point?
Select one:

a.
A decrease in Product Z's selling price.

b.
A change in the relative market demand for the products, with the increase favoring Product Z relative to
Product Y and Product X.

c.
An increase in the overall market demand for Product Y.

d.
The installation of new automated equipment and subsequent lay-off of factory workers.
Phản hồi
The correct answer is: A change in the relative market demand for the products, with the increase
favoring Product Z relative to Product Y and Product X.
Câu Hỏi 10
Newman Corporation produced and sold 80,000 units and reported sales of $4,000,000 during the
past year. Management determined that variable expenses totaled $2,800,000 and fixed expenses
totaled $720,000. What is the company's contribution margin ratio?
Select one:

a.
70%

b.
30%
c.
250%

d.
150%
Phản hồi
The correct answer is: 30%