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51) ________ 100 percent minus total variable operating costs as

Question : 51) ________ 100 percent minus total variable operating costs as : 1415205

 

51) ________ is 100 percent minus total variable operating costs as a percentage of total sales.

A) Profit margin

B) Contribution margin

C) Expense ratio

D) Fixed coverage ratio

52) A firm has fixed operating costs of $10,000, the sale price per unit of its product is $25, and its variable cost per unit is $15. The firm's operating breakeven point in units is ________ and its breakeven point in dollars is ________.

A) 1,000; $6,250

B) 400; $10,000

C) 400; $25,000

D) 1,000; $25,000

53) A firm has fixed operating costs of $150,000, total sales of $1,500,000, and total variable costs of $1,275,000. The firm's operating breakeven point in dollars is ________.

A) $150,000

B) $176,471

C) $1,000,000

D) $1,425,000

54) A firm has fixed operating costs of $253,750, a sales price per unit of $100, and a variable cost per unit of $65. The firm's operating breakeven point in dollars is ________.

A) $725,000

B) $700,000

C) $906,250

D) $390,385

55) One function of breakeven analysis is to ________.

A) determine the profit attributable to each stockholder

B) evaluate the effect of leverage on a firm's risks and returns

C) evaluate the profitability of various sales levels

D) determine the amount of financing needed by the firm

56) The preferred approach to breakeven analysis for a multiproduct firm is the ________.

A) breakeven point expressed in units

B) breakeven point expressed in dollars

C) cash breakeven point

D) overall breakeven point

57) A firm has fixed operating costs of $25,000, a per unit sales price of $5, and a variable cost per unit of $3. What is its operating breakeven point if it targets net operating income of $10,000?

A) 12,500 units

B) 15,000 units

C) 17,500 units

D) 25,000 units

58) Tony's Beach T-Shirts has fixed annual operating costs of $75,000. Tony retails his T-shirts for $14.99 each and the variable cost per T-shirt is $4.99. Based on this information, the breakeven sales level in dollars is ________.

A) $125,495

B) $112,425

C) $108,995

D) $110,495

59) Tony's Beach T-Shirts has fixed annual operating costs of $75,000. Tony retails his T-shirts for $14.99 each and the variable cost per T-shirt is $4.99. Based on this information, the breakeven sales level in units is ________.

A) 7,500

B) 15,030

C) 5,003

D) 3,754

60) Mark must buy four new tires for his car. He is considering buying tires that are $25 a piece more than his regular brand, because the higher priced tires are supposed to increase his miles per gallon by 20%. If the tires are good for 48,000 miles and Mark drives an average of 1,000 miles per month, gas costs $2.50 per gallon over the next 4 years, and Mark's car gets 30 miles to the gallon now (on the old tires), should Mark purchase the more expensive tires?

A) Yes, because Mark will save about $660 dollars in gas over the four years but the new tires will only be $100 more.

B) Yes, because Mark will save about $560 dollars in gas over the four years but the new tires will only be $100 more.

C) No, because Mark will only save about $60 dollars in gas over the four years but the new tires will only be $100 more.

D) No, because Mark will only save about $90 dollars in gas over the four years but the new tires will only be $100 more.

 

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