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BUS 5431 Final Exam 2, Questions With Answers

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BUS 5431 Final Exam 2, Questions With Answers.Your test grade is 91.67% The professor has configured this test to allow students to: Show Questions Answered Correctly Show Questions Answered Incorrectly Show All Resp ...

BUS 5431 Final Exam 2, Questions With Answers.Your test grade is 91.67% The professor has configured this test to allow students to: Show Questions Answered Correctly Show Questions Answered Incorrectly Show All Responses Selected By Student Show What The Correct Response Should Be QUESTION: 1 [QUESTION BANK ID: 170462] TYPE: MULTIPLE CHOICE CORRECT Nancy's Niche sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue, $20,000 of variable costs, and $10,000 of fixed costs. If variable costs decrease by $1 per unit, the new break even point is A $11,765 in total sales dollars B 492 units C 1,539 units D None of these answers are correct QUESTION: 2 [QUESTION BANK ID: 170207] TYPE: MULTIPLE CHOICE CORRECT Alex Miller, Inc. sells car batteries to service stations for an average of $30 each. The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10,000. Other monthly fixed costs of the company total $8,000. What is the breakeven level in batteries, assuming variable costs increase by 20%? A 1,500 batteries B 3,000 batteries C 60 batteries D None of these answers are correct QUESTION: 3 [QUESTION BANK ID: 320719] TYPE: MULTIPLE CHOICE CORRECT Magic Screen’s contribution income statement utilizing variable costing appears below: Magic Screen Company Income Statement For the Year Ended December 31, 2007 Sales ($30/unit) $1,200,000 Less variable costs: COGS 800,000 Selling and administrative 40,000 840,000 Contribution margin 360,000 Fixed overhead 98,000 Fixed selling and administrative 170,000 268,000 Net income $92.000 Magic Screen Company produced 49,000 units during the year. Variable and fixed production costs have remained constant the entire year. There were no beginning inventories. The dollar value of the ending inventory using full costing will be: A $180,000 B $198,000 C $189,000 D $18,000 QUESTION: 4 [QUESTION BANK ID: 34388] TYPE: MULTIPLE CHOICE CORRECT Tifa Company has fixed costs of $26,775 per month. Tifa sells a single product with variable costs of $6.40 per unit. If 7,500 units can be sold this month, what price must Tifa charge in order to break even?  A $11.72 B $9.97 C $8.19 D $9.53

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