Which is the true statement?in a cvp income statement, costs and

28.Which is the true statement?
a.In a CVP income Statement, costs and expenses are classified only by function
b.The CVP income statement is prepared for both internal and external use
c.The CVp income statement shows contribution margin instead of gross profit
d.In a traditional income statement,costs and expenses are classified as either variable or fixed

29.Variable costs are 60% of the unit selling price.
The contribution margin ratio is 40%
The contribution margin per unit is $500
The fixed costs are $300,000
Which of the following does not express the break-even point?

30.A CVP graph does not include a
a.variable cost line
b.fixed cost line
c.sales line
d.total cost line

31.Boswell company reported the following information for the current year:Sales(50,000 units)$1,000,000, direct materials and direct labor 500,000, other variable costs 50,000, and fixed costs 270,000.

31-1 What is Boswell’s break-even point in units?

31-2 What is Boswell’s contribution margin ratio?

32.Walters Corporation sells radios for %50 per unit.The fixed costs are 420,000 and the variable costs are 60% of the selling price.As a result of new automated equipment,it is anticipated that fixed costs will increase by 100,000 and variable costs will be 50% of the selling price.The new break-even point in units is

33.Cunningham,Inc. sells MP3 players for $60 each.Variable costs are $40 per unit, and fixed costs total $90,000.What sales are needed by Cunningham to break even?

34.What is the key factor in determining sales mix if company has limited resources?
a.Contribution margin per unit of limited resource
b.The amount of fixed costs per unit
c.Total contribution margin
d.The cost of limited resources

35. (Oven Hours Required) (Contribution Margin Per Unit)
Muffins 0.2 $3    $15/hour
Coffee Cakes 0.3 $4  $13.33 / hour
The company has oven capacity of 1,200hours.How much will contribution margin be if it produces only the most profitable product?

36.Curtis Corporation’s contribution margin is $20 per unit for Product A and $24 for Product B.Product A requires 2 machine hours and Product B requires 4 machine hours.How much is the contribution margin per unit of limited resource of reach product?
a.$10 $6
b.$10 $6.66
c.$8 $6
d.$8 $6.66

37.Reducing reliance on human workers and instead investing heavily in computers and online technology will
a.reduce fixed costs and increase variable costs
b.reduce variable costs and increase fixed costs
c.have no effect on the relative proportion of fixed and variable costs
d.make the company less susceptible to economic swings

38.Cost structure refers to the relative proportion of
a.selling expenses versus adminstrative expenses
b.selling and administrative expenses versus costs of goos sold
c.contribution margin versus sales
d.none of the above

39.Mercantile Corporation has sales of 2,000,000,variable costs of 1,100,000,and fixed costs of 750,000.

39-1)mercantile’s degree of operating leverage is

39-2)margin of safety ratio is
a .08
b .17
c .20
d .83

40.Which of the following statements is not true?
a.Operating leverage refers to the extent to which company’s net income reacts to given change in sales
b.Companies that have higher fixed costs relative to variable costs have higher operating leverage.
c.when a company’s sales revenue is increasing,high operating leverage is good b/c it means profits will increase rapidly
d.When a company’s sales revenue is decreasing,high operating leverage is good b/c it means profits will decrease at slower pace than revenues decrease

42.Nielson Corp.sells its product for 8,800per unit. Variable costs per unit are:manufacturing,$4,800and selling and administrative,$100. Fixed costs are:24,000 manufacturing overhead,and 32,000selling and administrative. There was no beginning inventory at 1/1/12.Production was 20 units per year in 2012-14.Sales was 20units in 2012,16units in 2013, and 24units in 2014.

42-1)Income under absorption costing for 2014 is

42-2)Income under variable costing for 2013 is

42-3)Income under variable costing for 2014 is

42-4)For the 3years 2012-14
a.absorption costing income exceeds variable costing income by 8,000
b.absorption costing income equals variable costing income
c.variable costing income exceeds absorption costing income by 8,000
d.absorption costing income may be greater than,equal to,or less than variable costing income,depending on the situation


Essay Help
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.