Question

35. PhotoMix Corporation produces three products. Cost, price, and volume data is shown below: Total Fixed costs $2.400 Tax rate 40% Candle Holders Holders Holders Normal volume Price per unit Variable cost per unit 150 $5 $10 3 2 When using units as the measure, what proportion of the sales mix do picture holders represent? Round to the nearest whole percent. a) 33% b) 46% c) Some other percentage d) Cannot be determined Answer: b Difficulty: Easy Learning Objective: Explain the concept of cost-volume-profit (CVP) analysis in decision making Learning Objective:Apply CVP calculations for multiple in decision makingt cost-volume-profit 36. PhotoMix Corporation produces three products. Cost, price, and volume data is shown below: Total Fixed costs $2.400 Tax rate 40% Picture Holders Holders Holders Candle 150 Normal volume Price per unit Variable cost per unit $5 3 $10 2 When using revenues as the measure, what proportion of the sales mix do CD holders represent? Round to the nearest whole percent. a) 44% b) 38% c) 31% d) Cannot be determined Answer: a Difficulty: Easy

Answer 1

Answer 35:

Correct answer is:

b) 46%

Explanation:

Total Volume (Quantity) = Volume of of picture holder + Volume of candle holder + Volume of CD holder

= 300 + 150 + 200

= 650

Proportion of sales mix picture holder represent = Volume of picture holder /Total volume = 300 / 650 = 46%

Hence option B is correct and other options A, C and D are incorrect.

Answer 36:

Correct answer is:

a) 44%

Explanation:

Picture Holder Candle Holder CD Holder Total 300 $5 $1,500 150 $7 $1,050 200 $10 650 Price per unit (P) Sales Revenue (V * P) $2,000 $4,550 Revenue % to Total (V * P) / $4550 23%| 44%| 33% 100%

As such option A is correct and other options B, C and D are incorrect.

Answer 37:

Correct answer is:

d) cannot be determined

Explanation:

Date given are for current period. For next period data or growth rate or any other information is not given and pre-tax profit for next period cannot be determined.

As such option D is correct and other options A, B and C are incorrect.

Answer 38:

Correct answer is:

a) 1,230

Explanation:

Contribution margin per unit at the company level = $48 *25% + $50 * 50% + $52 * 25% = $50

Break-even point in units = Fixed cost / Contribution margin per unit at the company level = $61,500 / $50 = 1,230

As such option A is correct and other options B, C and D are incorrect.