Reference no: EM132583535
Question 1) Consider the following information regarding Unilever:
Sales revenue: RS. 18,000
Variable manufacturing expenses: RS. 7,000
Variable marketing and admin. expenses: RS. 1,000
Fixed manufacturing expenses: RS. 1,500
Fixed marketing and admin. expenses: RS. 500
Based on the above information, the contribution margin is:
Select one:
a. RS. 9,000
b. RS. 10,500
c. RS. 10,000
d. RS. 8,000
Question 2) If selling price per unit is RS. 100 and contribution margin percentage is 35% then contribution margin will be:
Select one:
a. RS. 6.5
b. RS. 35
c. RS. 65
d. RS. 3.5
Question 3) If the selling price is RS. 42 per unit, the variable cost is RS. 22 per unit, and total fixed cost is RS. 450,000, what will be the break-even point in units?
Select one:
a. 10,714.3 units
b. 20,454.54 units
c. 7,031.25 units
d. 22,500 units
Question 4) If degree of operating leverage is 4, a 15% increase in sales revenue will increase operating income by:
Select one:
a. 60%
b. 0.6%
c. 3.4%
d. 3.75%
Question 5) Unilever sells product M. Some selected data is given below:
Selling price per unit of product M: RS. 18
Variable cost per unit of product M: RS. 12
Total fixed cost: RS. 160,000
Based on the above information, how many units of product M would be required to sell to earn an operating profit of RS. 20,000?
Select one:
a. 10,000 units
b. 45,000 units
c. 30,000 units
d. 15,000 units
Question 6) If actual sales are RS. 40,000, break-even point in dollars is RS. 20,000, and variable cost is RS. 12,000, the margin of safety will be:
Select one:
a. RS. 20,000
b. RS. 28,000
c. RS. 8,000
d. RS. 32,000
Question 7) If sales are $700,000, variable costs are $490,000, and fixed costs are $240,000, what is the contribution margin percentage?
Select one:
a. 30%
b. 34.29%
c. 70%
d. 65.71
Question 8) If the margin of safety is 20% of sales, which are RS. 320,000, the break-even point:
Select one:
a. is RS. 256,000
b. is RS. 64,000
c. is greater than RS. 320,000
d. is less than RS. 64,000
Question 9) The current sales price is RS. 27 per unit and the current variable cost is RS. 15 per unit. Fixed costs are RS. 54,000. If the sales price is increased by RS. 3, and all other costs remain unchanged, the break-even point in units will:
Select one:
a. Increase by 1500 units
b. Increase by 900 units
c. Decrease by 900 units
d. Decrease by 1500 units
Question 10) Emma sells a product for RS. 10.55 The variable costs are RS. 7.50. Janet's break-even units are 25,000. What is the amount of fixed costs?
Select one:
a. RS. 76,250
b. RS. 8,196.7
c. RS. 187,500
d. RS. 263,750