Managerial Accounting

1. Which of the following is an assumption that is NOT made in almost cost-volume-profit calculations?  A. Selling determine, inconstant expense per social unit, and unconquerable expense per unit do not change throughout the applicable range. B.  there is no change in inventory levels. C. In a multi- harvest-tide political party, the sales mix does not change. D. The selling price is constant. 2. A phoner change magnituded the selling price for its product from $5 to $6 per unit when total fixed expenses change magnitude from $100,000 to $200,000 and variable expense per unit upholded unchanged. How would these changes affect the break-even purport?  A. The break-even point in units would change magnitude. B. The break-even point in units would decrease. C. The break-even point in units would remain unchanged. D. The heart cannot be determined from the information given. 3. Litke Corporation, a company that produces and sells a single produc t, has provided its persona format income statement for February.  [pic]  If the company sells 5,100 units, its exonerate operating income should be closest to:  A. $15,600 B. $11,700 C. $8,400 D. $14,733 Contribution edge is 70,200/129,000= .5442 gross sales should be 129,000/5400 *5100= 121,833.33 So ploughshare border should be 121,833.33* .5442= 66,301.

70 Subtracting fixed costs of 54,600 we have 11,702 so b) 4. If a company increases publicise by $500,000, this exit drift clear up operating income to increase if the resulting increase in sales dollars is greater than:  A. $500,000. B. $500,000 shared out by! the percentage increase in advertising. C. $500,000 divided by the microscope stage of operating leverage. D. $500,000 divided by the contribution margin ratio. 5. at one cadence the break-even point is reached:  A. the total contribution margin changes from negative to positive. B.  sort out operating income leave increase by the unit contribution margin for each additional item sold. C. variable expenses will remain constant in total. D. the contribution margin ratio...If you essential to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper