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# Question

11) One of the assumptions of cost-volume-profit (CVP) analysis is that there are no changes in the ________.

A) accounts payable

B) cash balance

C) inventory levels

D) accounts receivables

12) Maywood Company sells hand-knit scarves.. Each scarf sells for \$25. The company pays \$30 to rent vending space for one day. The variable costs are \$15 per scarf. How many scarves should the company sell each day in order to break even?

A) 4 scarves

B) 3 scarves

C) 5 scarves

D) 2 scarves

13) Maywood Company sells hand-knit scarves.. Each scarf sells for \$25. The company pays \$30 to rent a vending space for one day. The variable costs are \$15 per scarf. What total revenue amount does the company need to earn to break even?

A) \$85

B) \$75

C) \$50

D) \$100

14) Young Guns Company, which sells tents, has provided the following information:

 Price per unit \$40 Variable cost per unit 12 Fixed costs per month \$12,600

What are the required sales in units for Young to break even?

A) 252 units

B) 1,050 units

C) 315 units

D) 450 units

15) Young Company has provided the following information:

 Price per unit \$40 Variable cost per unit 12 Fixed costs per month \$12,600

What is the amount of sales in dollars required for Young to break even?

A) \$1,050

B) \$18,000

C) \$5,400

D) \$12,600

16) Roberts Tobacco Company has fixed costs of \$10,000. Their contribution margin ratio is 40% and ratio of selling expenses to sales is 20%. What is the breakeven point in sales dollars?

A) \$50,000

B) \$25,000

C) \$4,000

D) \$2,000

17) The Perfect Fit Company sells hand-sewn shirts for \$40 per shirt. It incurs monthly fixed costs of \$5,000. The contribution margin ratio is calculated to be 20%. What is the breakeven point in units?

A) 950 units

B) 1,750 units

C) 1,125 units

D) 625 units

18) Jenna Manufacturers produces flooring material. The monthly fixed costs are \$10,000 per month. The unit selling price is \$75 and variable cost per unit is \$35. If Jenna's managers create a CVP graph from volume levels of zero to 500 units, at what sales level (in units) will the revenue and total cost lines intersect?

A) 250 units

B) 190 units

C) 240 units

D) 275 units

19) Jupiter Company sells glass vases at a wholesale price of \$3 per unit. The variable cost of manufacture is \$1.75 per unit. The fixed costs are \$7,500 per month. It sold 5,500 units during this month. Calculate Jupiter's operating income (loss) for this month.

A) \$9,000

B) \$625

C) (\$625)

D) (\$7,500)

20) Jupiter Company sells glass vases at a wholesale price of \$2.50 per unit. The variable cost of manufacture is \$1.75 per unit. The monthly fixed costs are \$7,500. Its current sales are 25,000 units per month. If the company wants to increase its operating income by 20%, how many additional units, must it sell? (Round intermediate calculations to two decimal places.)

A) 145,000 glass vases

B) 7,500 glass vases

C) 13,500 glass vases

D) 3,000 glass vases

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