Question: Question E - Cost Volume Profit (10 marks). Answer the questions below. The entity above prepared the forecasted income statement presented. The entity expects to

Question E - Cost Volume Profit (10 marks). Answer the questions below.

The entity above prepared the forecasted income statement presented. The entity expects to sell 250,000 units during the next year. The Chief Financial Officer has been asked to answer the questions below. Sales have over time, been 15% better or 15% worse than forecast for this company.

Questions

What is the contribution margin ratio and contribution margin per unit?
What are break-even sales dollars and units?
What is the safety margin of the forecasted sales level versus break-even sales? Does this level of safety raise concerns, why?
The entity would prefer to achieve an operating profit of $500,000. What is the level of required sales units and dollars?
What is the operating leverage ratio? What does it predict if sales are down 15%?

Answers

1. _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________________________________________3.

___________________________________________________________________________

4. _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

___________________________________________________________________________5. ______________________________________________________________________________________________________________________________________________________

Question F - Opinion (5 marks)

Describe two situations in Human Resources Management where variable and fixed cost are applicable.

End of ExamQuestion E - Cost Volume Profit (10 marks). Answer the questions below.

Questions

What is the contribution margin ratio and contribution margin per unit?
What are break-even sales dollars and units?
What is the safety margin of the forecasted sales level versus break-even sales? Does this level of safety raise concerns, why?
The entity would prefer to achieve an operating profit of $500,000. What is the level of required sales units and dollars?
What is the operating leverage ratio? What does it predict if sales are down 15%?

Answers

______________________________________________________________________________________________________________________________________________________3.

___________________________________________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Question F - Opinion (5 marks)

Describe two situations in Human Resources Management where variable and fixed cost are applicable.

End of ExamQuestion E - Cost Volume Profit (10 marks). Answer the questions below.

Questions

What is the contribution margin ratio and contribution margin per unit?
What are break-even sales dollars and units?
What is the safety margin of the forecasted sales level versus break-even sales? Does this level of safety raise concerns, why?
The entity would prefer to achieve an operating profit of $500,000. What is the level of required sales units and dollars?
What is the operating leverage ratio? What does it predict if sales are down 15%?

Answers

______________________________________________________________________________________________________________________________________________________3.

___________________________________________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Question F - Opinion (5 marks)

Describe two situations in Human Resources Management where variable and fixed cost are applicable.

End of ExamQuestion E - Cost Volume Profit (10 marks). Answer the questions below.

Questions

What is the contribution margin ratio and contribution margin per unit?
What are break-even sales dollars and units?
What is the safety margin of the forecasted sales level versus break-even sales? Does this level of safety raise concerns, why?
The entity would prefer to achieve an operating profit of $500,000. What is the level of required sales units and dollars?
What is the operating leverage ratio? What does it predict if sales are down 15%?

Answers

______________________________________________________________________________________________________________________________________________________3.

___________________________________________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Question F - Opinion (5 marks)

Describe two situations in Human Resources Management where variable and fixed cost are applicable.

End of ExamQuestion E - Cost Volume Profit (10 marks). Answer the questions below.

Questions

What is the contribution margin ratio and contribution margin per unit?
What are break-even sales dollars and units?
What is the safety margin of the forecasted sales level versus break-even sales? Does this level of safety raise concerns, why?
The entity would prefer to achieve an operating profit of $500,000. What is the level of required sales units and dollars?
What is the operating leverage ratio? What does it predict if sales are down 15%?

Answers

______________________________________________________________________________________________________________________________________________________3.

___________________________________________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Question F - Opinion (5 marks)

Describe two situations in Human Resources Management where variable and fixed cost are applicable.

End of ExamQuestion E - Cost Volume Profit (10 marks). Answer the questions below.

Questions

What is the contribution margin ratio and contribution margin per unit?
What are break-even sales dollars and units?
What is the safety margin of the forecasted sales level versus break-even sales? Does this level of safety raise concerns, why?
The entity would prefer to achieve an operating profit of $500,000. What is the level of required sales units and dollars?
What is the operating leverage ratio? What does it predict if sales are down 15%?

Answers

______________________________________________________________________________________________________________________________________________________3.

___________________________________________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Question F - Opinion (5 marks)

Describe two situations in Human Resources Management where variable and fixed cost are applicable.

End of ExamQuestion E - Cost Volume Profit (10 marks). Answer the questions below.

Questions

What is the contribution margin ratio and contribution margin per unit?
What are break-even sales dollars and units?
What is the safety margin of the forecasted sales level versus break-even sales? Does this level of safety raise concerns, why?
The entity would prefer to achieve an operating profit of $500,000. What is the level of required sales units and dollars?
What is the operating leverage ratio? What does it predict if sales are down 15%?

Answers

______________________________________________________________________________________________________________________________________________________3.

___________________________________________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Question F - Opinion (5 marks)

Describe two situations in Human Resources Management where variable and fixed cost are applicable.

End of ExamQuestion E - Cost Volume Profit (10 marks). Answer the questions below.

Questions

What is the contribution margin ratio and contribution margin per unit?
What are break-even sales dollars and units?
What is the safety margin of the forecasted sales level versus break-even sales? Does this level of safety raise concerns, why?
The entity would prefer to achieve an operating profit of $500,000. What is the level of required sales units and dollars?
What is the operating leverage ratio? What does it predict if sales are down 15%?

Answers

______________________________________________________________________________________________________________________________________________________3.

___________________________________________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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