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2.
3.
as a planning tool.
for control purposes.
to prepare external financial statements.
to attain accurate financial results.
none of the above.
The selling price per unit less the variable cost per unit is the
a.
b.
c.
d.
e.
$4.00.
$4.29.
$6.00.
12.00.
none of the above.
5.
2,000 units.
3,000 units.
5,000 units.
6,000 units.
none of the above.
The number of units that must be sold to achieve $60,000 of operating income is
a.
b.
c.
d.
e.
10,000 units.
11,666 units.
12,000 units.
24,000 units.
none of the above.
7.
$10,000.
$15,000.
$22,200.
$30,000.
none of the above.
Touring
bike
$80.00
$52.80
Fixed costs will total $369,600 if the mountaineering model is produced but will be only
$316,800 if the touring model is produced. XYZ Company is subject to a 40% income tax rate.
8.
If XYZ Company desires an after tax net income of $22,080, how many units of touring
bike will the company have to sell?
a.
b.
c.
d.
e.
9,000 units.
11,000 units.
13,000 units.
15,000 units.
none of the above.
9.
Suppose management decided to produce both models and sell them in equal
proportions. If the total fixed costs amount to $468,000, what is the firms break-even
point in units?
a.
b.
c.
d.
e.
9,000 units.
11,000 units.
13,000 units.
15,000 units.
none of the above.
Section B: Questions/Problems
Note to students: The assigned questions/problems are based on Horngren, CT, Datar, SM &
Rajan, M. (2015). Cost Accounting: A Managerial Emphasis. Global Edition, 15th Edition.
Prentice Hall: Upper Saddle River.
Chapter
3
Topic
Cost-Volume-Profit Analysis
Assigned Questions /
Problems
3-39 (Reguirement#3 only)*
3.
$645,000
407,000
32,250
205,750
180,000
$
25,750
Page 5