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88.              If a company had a contribution margin of $1,000,000

Question : 88.              If a company had a contribution margin of $1,000,000 : 1433619

 

88.              If a company had a contribution margin of $1,000,000 and a contribution margin ratio of 40%, total variable costs must have been

a.$1,500,000.

b.$600,000.

c.$2,500,000.

d.$400,000.

89.              Which of the following would not be an acceptable way to express contribution margin?

a.Sales minus variable costs

b.Sales minus unit costs

c.Unit selling price minus unit variable costs

d.Unit contribution margin divided by unit selling price

90.              A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the unit selling price?

a.$200

b.$300

c.$48

d.Cannot be determined.

91.              Sales are $500,000 and variable costs are $330,000. What is the contribution margin ratio?

a.52%

b.34%

c.66%

d.Cannot be determined because amounts are not expressed per unit.

92.              Dunbar Manufacturing’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $55,000. If sales are expected to increase $100,000, by how much will the company's net income increase?

a.$45,000

b.$70,000

c.$30,000

d.$15,000

93.              Weatherspoon Company has a product with a selling price per unit of $200, the unit variable cost is $110, and the total monthly fixed costs are $300,000. How much is Weatherspoon’s contribution margin ratio?

a.45%

b.55%

c.150%

d.182%

94.              Armstrong Industries has a contribution margin of $240,000 and a contribution margin ratio of 30%. How much are total variable costs?

a.$72,000

b.$560,000

c.$168,000

d.$800,000

95.              Zehms, Inc. has a unit contribution margin of $30 and a contribution margin ratio of 60%. How much is the selling price of each unit?

a.$50

b.$75

c.$18

d.Cannot be determined without more information.

96.              A division sold 200,000 calculators during 2017:

Sales$2,000,000

Variable costs:

Materials$380,000

Order processing150,000

Billing labor110,000

Selling expenses    60,000

Total variable costs700,000

Fixed costs1,000,000

How much is the unit contribution margin?

a.$1.00

b.$3.50

c.$8.50

d.$6.50

97.              At the break-even point of 2,000 units, variable costs are $165,000, and fixed costs are $96,000. How much is the selling price per unit?

a.$130.50

b.$34.50

c.$48.00

d.Not enough information

 

 

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