Question

Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs are $3,000. The price is $15 per unit, Predict total contribution margin for volume of 800 units. A. $4,200 B. $5,600 C. $2,600 OD. $9,000 QUESTION 12 Gamma Company sold 510 units of product X54 at a selling price of $20 per unit. Variable costs related to the production of X54 were $15 per unit. Fixed costs for the period were $2,000. Calculate the unit contribution margin of X54. A $5 B. $15 C. $20 D. $2.015

Answer 1

Contribution margin = Selling price – variable cost

Break even volume = Fixed costs/Unit contribution margin

Profit = Contribution Margin – Fixed costs

Hence, the answer is A.same, increase, decrease

11.CM = (15-8)*800

= $5600

i.e. B

12.Unit Contribution margin = 20-15 = $5 per unit

i.e. A

13.A. is false

Cost of goods manufactured includes both those sold and those unsold

14.Degree of operating leverage = Contribution margin/Operating income

= 20,000/5000

= 4

i.e. A

15.Total cost will increase by increase in variable cost

= 220*100 = $22000

i.e. C