100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
ACCOUNTING 234 Core 2 Quiz 1 Answers $6.49   Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of Notre Dame
  4.  
  5. Accounting 234

Exam (elaborations)

ACCOUNTING 234 Core 2 Quiz 1 Answers
 815 views  3 purchases

ACCOUNTING 234 Core 2 Quiz 1 Answers Company XYZ sells three products: rocks, paper, and scissors. The rocks’ contribution margin (CM) per unit is highest and the scissors’ CM per unit is lowest. Which one of the following events will increase the company’s overall break-even point?

Preview 3 out of 19  pages

Document information

  • March 4, 2022
  • 19
  • 2021/2022
  • Exam (elaborations)
  • Questions & answers

Subjects

  • paper
  • accounting 234 core 2 quiz 1 answers
  • company xyz sells three products rocks
  • and scissors the rocks’ contribution margin cm per unit is highest and the scissors’ cm per unit is lowest whic

Written for

All documents for this subject (3)

Seller

avatar-seller
PASSINGMASTER01

Reviews received

Content preview

Question 1
Company XYZ sells three products: rocks, paper, and scissors. The rocks’ contribution margin (CM) per unit is highest and the
scissors’ CM per unit is lowest. Which one of the following events will increase the company’s overall break-even point?
a) A decrease in the cost of direct materials used in all three products
b) Increasing scissors’ selling price
c) An increase in the cost of direct materials used in all three products
d) An increase in the demand for rocks
View Feedback
Question 2
A company has provided the following data:
Sales 2,000 units
Sales price $50/unit
Variable cost $30/unit
Fixed cost $25,000
If the variable cost per unit is decreased by 10%, the total fixed cost is increased by 20%, and all other factors remain the same, what will be the effect on operating income?
a) It will decrease by $5,000.
b) It will decrease by $1,000.
c) It will increase by $1,000. d) It will increase by $6,000.
View Feedback
Question 3
UCB has the following financial results for the month of June:
Sales $3,120,000
Variable costs 1,920,000
Contribution margin 1,200,000
Fixed costs 1,380,000
Profit/loss $(180,000)
A total of 200,000 units were produced and sold during the month of June. In order to break even, how many units should be produced and sold?
a) 143,750 units
b) 200,000 units
c) 230,000 units
d) 3,588,000 units
View Feedback
Question 4
The James Company requires 22,223 units to be sold to break even. The sales price per unit is $10 and variable costs per unit are $5.50. How much were the total fixed costs for this company?
a) $100,004
b) $122,227 c) $222,230
d) $111,115
View Feedback
Question 5
The contribution margin ratio (CM ratio) is:
a) revenues equalling costs.
b) the CM converted to a percentage by dividing the CM dollar value by the variable costs.
c) fixed costs less target profit.
d) the CM converted to a percentage by dividing the CM dollar value by the sales value.
View Feedback
Question 6
J&J Co. produces alarm system keypads. The sales price of each unit is $12.50 and the variable costs per unit are $10. The total fixed costs are $100,000. How many units does J&J need to sell in order to earn a profit of $150,000?
a) 20,000
b) 25,000
c) 40,000
d) 100,000
View Feedback

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller PASSINGMASTER01. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $6.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

84866 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$6.49  3x  sold
  • (0)
  Add to cart