QUESTION $1$

The contribution margin ratio is equal to:

Total manufacturing expenses$/$Sales$.$

$($Sales $$ Variable expenses$)/$Sales$.$

$1($Gross Margin$/$Sales$).$

$1($Contribution Margin$/$Sales$).$

$1$ points

QUESTION $2$

Smee Inc. produces and sells a single product. The selling price of the product is $$130\mathrm{.}00$ per unit and its variable cost is $$52\mathrm{.}00$ per unit. The fixed expense is $$281,580$ per month.

The break$-$even in monthly unit sales is closest to:

$3,730$ units

$5,415$ units

$2,166$ units

$3,610$ units

$1$ points

QUESTION $3$

The $\_\_\_\_\_\_\_\_$ is the amount remaining from sales revenue after all variable expenses have been deducted.

cost structure

contribution margin

committed fixed cost

gross margin

$1$ points

QUESTION $4$

Data concerning Kuralt Corporation's single product appear below:

Selling price per unit $$220\mathrm{.}00$

Variable expense per unit $$57\mathrm{.}20$

Fixed expense per month $$310,948$

The break$-$even in monthly dollar sales is closest to:

$$420,200$

$$310,860$

$$642,400$

$$1,195,920$

$1$ points

QUESTION $5$

Within the relevant range:

variable cost per unit decreases as production decreases.

fixed cost per unit increases as production decreases.

fixed cost per unit decreases as production decreases.

variable cost per unit increases as production decreases.

$1$ points

QUESTION $6$

Data concerning Massing Corporation's single product appear below:

Per Unit Percent of Sales

Selling price $$230100\%$

Variable expenses $11550\%$

Contribution margin $$11550\%$

The company is currently selling $9,000$ units per month. Fixed expenses are $$837,000$ per month. The marketing manager believes that a $$16,000$ increase in the monthly advertising budget would result in a $150$ unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

increase of $$1,250$

decrease of $$16,000$

decrease of $$1,250$

increase of $$17,250$

$1$ points

QUESTION $7$

Data concerning Kuralt Corporation's single product appear below:

Selling price per unit $$220\mathrm{.}00$

Variable expense per unit $$57\mathrm{.}20$

Fixed expense per month $$310,948$

The break$-$even in monthly unit sales is closest to:

$5,436$ units

$1,413$ units

$2,920$ units

$1,910$ units

$1$ points

QUESTION $8$

The following costs were incurred in April:

Direct materials $$29,000$

Direct labor $$24,000$

Manufacturing overhead $$14,000$

Selling expenses $$18,000$

Administrative expenses $$18,000$

Prime costs during the month totaled:

$$103,000$

$$38,000$

$$53,000$

$$67,000$

$1$ points

QUESTION $9$

The margin of safety is:

the excess of budgeted or actual sales over the break$-$even volume of sales.

the excess of budgeted or actual sales over budgeted or actual fixed expenses.

the excess of budgeted or actual sales over budgeted or actual variable expenses.

the excess of budgeted net operating income over actual net operating income.

$1$ points

QUESTION $10$

Fresh Wreath Corporation manufactures wreaths according to customer specifications and ships them to customers using United Parcel Service $($UPS$).$ Which two terms below describe the cost of shipping these wreaths?

fixed cost and product cost

variable cost and product cost

variable cost and period cost

fixed cost and period cost