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What amount of units must be sold in order to realize

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Reference no: EM132589847

Question 1: Which of the following is an example of a cost that varies in total as the number of units produced changes?

A. Salary of a production supervisor

B. Direct materials cost

C. Property taxes on factory buildings

D. Straight-line depreciation on factory equipment

Question 2: Contribution margin is:

A. the excess of sales revenue over variable cost

B. another term for volume in the "cost-volume-profit" analysis

C. profit

D. the same as sales revenue

Question 3: Salim's fixed costs are RM41, 500, the variable cost is RM12 per unit. If Salim sells the product for RM22 per unit, the breakeven point is:

A. 4,150 units

B. 8,300 units

C. 2,075 units

D. 6,225 units

Question 4: The fixed costs of Juara Co. are RM500, 000 and the unit contribution margin is RM40. If the fixed costs are increased by RM80,000, what is the break-even point?

A. 14,500

B. 12,500

C.8,333

D. 9,667

Question 5: The followings are underlying assumptions of CVP analysis EXCEPT:

A. the changes in the activity are the only factors that affect costs

B. the costs classifications are reasonably accurate

C. the beginning inventory is larger than ending inventory

D. sales mix is constant

Question 6: Fatt Choo Sdn Bhd's sales are RM820, 000, variable costs are 62% of sales, and operating income is RM260, 000, what is the contribution margin ratio?

A. 53.1%

B. 38%

C.62%

D. 32%

Question 7: If fixed costs are RM500, 000 and the unit contribution margin is RM12, what amount of units must be sold in order to realize an operating income of RM100, 000?

A. 5,000

B. 41,667

C.50,000

D. 58,333

Question 8: If sales, variable costs and operating income are RM400, 000, RM200, 000 and RM100,000 respectively, what is the contribution margin ratio?

A. 75%

B. 50%

C. 25%

D. 0%

Question 9: Titian Bhd had a contribution margin of RM300, 000 and a contribution margin ratio of 20%, what is the total variable cost?

A. RM1,500,000

B. RM1,200,000

C. RM240,000

D. RM60,000

Question 10: Zaza West Sdn Bhd reported the following data in its Statement of Profit or Loss and Other Comprehensive Income:

Unit sold 8,000

Sales revenue RM9,600,000

Variable costs RM6,000,000

Fixed cost RM2,600,000

If the company desired to earn a target net profit of RM1,270,000, it would have to sell:

A. 5,778 units

B. 8,600 units

C. 10,160 units

D. 11,908 units

Reference no: EM132589847

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