QUESTION 7 Which of the following statements is correct with regard to a CVP (Cost, Volume,...
QUESTION 34 Drake Company's income statement for the most recent year appears below: Sales (26,000 units) $650,000 442,000 208,000 234,000 $(26,000) Contribution margin Net operating loss Drake's unit contribution margin is O 1. $17 O 3. $1 QUESTION 31 Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November Sales (5,700 units Variable expenses. Contribution margin Fixed expense Net operating income $319,200 188,100 131,100 106,500 $24600 If the company sells...
QUESTION 1 Responsibility accounting is a system in which a manager is held responsible for those items of revenues and costs-and only those items-that the manager can control to a significant extent. O True O False QUESTION 2 The sales volume in units that are needed to achieve a specific Target Profit can be calculated by Dividing the dollars of fixed costs by the unit contribution margin Dividing the dollars of fixed costs and target profit by the unit contribution...
342 Chapter 7 Cost-Volume-Profit Analysis Exercises All applicable Exercises are available with McGraw-Hill's Connect Accounting. Cornect JACCOUNTING Exercise 7-23 Fill in Blanks; Basic CVP Relationships (LO 1,2) Fill in the missing data for each of the following independent cases. Sales Variable Total Fixed Operating Income Break-Even Sales Revenue Revenue Expenses Contribution Margin Expenses 1. $40,000 ? $30,000 ? $40,000 $ 80,000 ? $15,000 80,000 3. 40,000 80,000 $50,000 38,000 ? 4. 110,000 22,000 ? Exercise 7-24 Pizza Delivery Business, Basic...
342 Chapter 7 Cost-Volume-Profit Analysis All applicable Exercises are available with McGraw-Hill's Connect Accounting C C CL ACCOUNTING Exercises Exercise 7-23 Fill in Blanks; Basic CVP Relationships (LO 1,2) Fill in the missing data for each of the following independent cases. Sales Revenue Total Contribution Margin Operating Income - Not Variable Expenses $40,000 ? 40,000 22,000 Fixed Expenses $30,000 ? $ 80,000 Break-Even Sales Revenue $40,000 80,000 $15,000 80,000 ? $50,000 38,000 ? 110,000 ? Exercise 7-24 Pizza Delivery Business...
To prepare a CVP graph, lines must be drawn representing total revenue, O total expense, and profit O total expense, and total fixed expense O break-even point, and profit O total variable expenses, and total fixed expense
Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below: Total Company East West Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income $1,040,000 676,000 364,000 148,000 216,000 76,000 $ 140,000 $ 650,000 442,000 208,000 64,000 $ 144,000 $ 390,000 234,000 156,000 84,000 $ 72,000 Required 1. Compute the companywide break-even point in dollar sales 2. ℃ompute tne break-even point in...
Which of the following is an assumption underlying standard CVP analysis? Multiple Choice The price of a product or service is expected to change as volume changes. 0 Fixed expenses will change as volume increases. In multiproduct companies, the sales mix is constant. С C In manufacturing companies, inventories always change. If sales volume increases and all other factors remain constant, then the: Multiple Choice net operating income will decrease. O margin of safety will increase. contribution margin ratio will...
Cost-volume-profit (CVP) analysis is a powerful tool for planning and decision making. Thus, CVP analysis emphasized the interrelationships of costs, quantity sold, and price. This analysis is defined as assessment of total revenues, total costs and operating income in response to changes in the volume of sales, the selling price, variable cost or fixed costs of production. The CVP analysis can be a valuable tool in identifying the extent and magnitude of the economic trouble a company is facing and...
Excel SIM: CVP Analysis 1. Determine the break-even point. 2. Compute the margin of safety and explain its significance 3. Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. 35 CVP Analysis Excel FORMULAS DATA INSERT PAGE LAYOUT REVIEW Sign In A Alignment Number Edang Conditional Formatas Cell Formatting Table Styles Styles Given the following information complete a CVP analysis Given the following...
need this question answer. 1. Prepare a CVP graph showing Total Cost line, Total Fixed Cost line, Total Revenue line, Break-even point, Profit area, and Loss area. 2. Describe the differences between a job-costing system and a process-costing system. Provide 2 examples of each system.