Attempts: 321 out of 322 Unit Variable cost is constant within the relevant range True False No Answer Attempts: 322 out of 322 Classifying a cost as fixed or variable depends on how it behaves both Aand B are correct. in total, as the volume of activity changes. none of the above per unit, as the volume of activity changes. Attempts: 322 out of 322 Total costs are zero when outside the relevant range True FalseAttempts: 322 out of 322 Avery high degree of operating leverage (DOL) indicates that a firm: Has higher variable costs than fixed costs has high fixed costs has high operating income ‘The company is operating near its break-even point Attempts: 322 out of 322 Cost-volume-profit analysis allows management to determine the relative profitability of a product by Highlighting potential bottlenecks in the production process. Keeping fixed costs to an absolute minimum per unit and projected profits at various levels of production. Determining the contribution mai Assigning costs to a product in a manner that maximizes the contribution margin. ‘Attempts: 322 out of 322 The following diagram is a cost-volume-profit graph for a manufacturing company: Prize B ~ Vonsme The difference between line AB and line AC (area BAC) is the: contribution margin per unit. total variable cost. total fixed cost.ich felonies tothe a? iar sacs | ‘ah nid ane cvs ani convient nv a nm thc achagh on nen el Sih a cd mana seen — Can seine pola carnal whet aig ee? cht eon nota hosoapect ester etdThe least-squares regression is the most accurate method in estimating the cost function True False ‘Attempts: 921 out of 322 Which of the following decreases per-ut contribution margin the most for a company that currently earning a profit? ‘810% decrease in sling price. ‘8.10% increase in variable cost per unit 10% increase in fixed costs ‘810% increase in fixed cost per unit No Answer ‘Attempts: $22 out of 322 The coefficient of correlation is a measure of: ‘The distance between the constant and the slope How wel the independent variable explains the changes inthe dependent variable ‘The linear relationship between the dependent and the independent variable how the total cost ralates to the cast driver ‘Attempts: 922 out of 222 ‘The CVP analysis assumes that the sales mix is constant in a multiproduct setting. Tne Falsebate x cmd OQ 23,280 FET SOD ~lOO1TSO X 5-2 - vo (201500 -— FO ‘Amado Co. manufactures and sells Product A, During the previous month, 77,500 units of Product A were sold Total xed costs amounted to P322,400. Is margin of safety was 15,500 units What is the operating income of Product isles increases by 30%. Taxrate is 40% \" cz cn 43,500 @eep F CUTEM Sailcs “is t00) a22uyy ~ 222,406 HOS oo 322,U00 Ee Sales C2000 on Ra G2 a) units C2,000 © pow OL = FHSOO X SO] * iene aadinen Soles ‘olesaanval > The Tanker Company estimated the following data for the cominean) Fixed manufacturing costs P600,000 -? Ann vol Variable production costs per peso of sales Materials p o125 CAS Direct labor 0 35 0.150 CQ¢y Variable overhead 0075 CaS Variable selling costs per peso of sales 0.150 terok cords 330,000 1,265,000 1,115,000 880,000 No Answer 80000 X O35 = 266.CDd V-CGS . F.ceJ Coogee x Yyp = FeO FE 320/000)Damrinaman Corps sling skin care products namely: muraytic acid, zondox and samexiilin. The products are being sold nGea}ote “The total xe factory overhead amounts toP1.000,000 Daminaman also oe x 2: ‘commissions based on selling rice to its sales agents, Fixed selling costs amounted to P120.000, ‘The seling price and contribution margin ratio are as fol ing pe it follows: " L Muraytic Acid) Zondrox | Samoxiclin se 30 2 ps0 He esp Ol. cad & 's s uo col: 20 what ie the | meaning BEP in Batehas SS Bee in onits Binigery 101 CHA ayo ch tT pure gare! n 3 HK Zz Ss cw g ws 20 HM 4G Me wero & 5 3.33.0 2 N33 TEC > TEC 1120.00) wAcHY N33. + {000 0) + (26-008 ComThe following is the simple regression results based on the data from Madrigal Corporation: Dependent variable - Machine maintenance costs Independent variable - Machine hours. Computed values Intercept P3,500 Coefficient on independent variable P3250 Coefficient of correlation 0.856 re Cr KKK What percentage of the variation in maintenance costs is explained by the independent variable? ee Cocrrecient oF Yororminarian or C r 2) 73.3% 35.0% 47.3% 95.2% No AnswerBluejeans Company has an after-tax profit of P140,000, Bluejeans has a return on sales of 20% and the tax rate fs 30% The total fixed costs of Bluejeans amounts to P100,000, what isthe contribution margin ratio i the sales volume increases to 150%? (round of your answers to four decimal places. do not use percentage. Wrong: 27.28%, Right 0.2728) a -— — TS a NoAnswer 4 7] 7 1.000 CO A) (COMO 11000 000 (cH. ~ 26/.) > S00 COS “aA / FO regal co gales cH. - BOS: 6 ow 277 2011. fo operating ‘income corrent = sled 22 L ce oe 2)The following information was gathered by the managerial accountant to estimate the 2nd quarter's utility cost: Months Utility Cost Direct labor hours January 8,520 1809 February 7,628 1421 March 5,712 912 Y = 9G2[ + 3x April 6,746 1102 , ; a 4 Summation of X 5.244 Summation of ¥ 28,606 5 ong tan Summation of XY 38,895,504 Pr Guartar on% ™ Summation of X-squared 7,337,870 Qty Using the regression analysis, what is the estimated cost-function for tl FC = 3207 %3 2 4/62) — Y~ 3,207 +300) Y= 9,621 + 30x) Y= 12,828 + 3(x) Y= 12,828 + 2(X) No Answer SS51S@1Y OY 4 $0, COD , B64 t + pe 4 (280s) ~(G2w4 x 26,606) 4 (#83t70) ~ (S244 a 524) uv 29,351,420 27/ U9Q/S3L 2 SFIS 3 poegiz... \os lau 1S3TO S re — 3.006(5244) ee eG ON «203 4Danner has an average unit cost of P22.50 at a volume of 400,000 units. At 500,000 units the average unit cost is P20.50. How much is the variable cost per unit? 10,250,0@ ~ 400000 00 CD ~ Yo odThe contribution margin per unit is PS, while the direct fixed costs are P30,000 and the allocated fixed costs are P60,000. What is the break-even point in units? 9,000 36,000 18,000 27,000 No Answer \t TEC G0,000 = IB.COO‘The following are projections about the two products of Dorine Company, baubles and trinkets, for the coming year: sh (0 y HS to : ts Baubles Trinkets B vy Units Amount Units Amount Total oN 1.333 Sales 10,000 P10,0007,500 P10,000P20,000 voy (062 ¢ cr) Costs cay 0-4 6.9383 --- Fixed P 2,000 P5,600 P 7,600 st Ins F3)as Variable 3,000 _2,000 me 0.220SFIU. OM P 8,000 P8,600 P16,600 whcnu = 06 C2057I4 Income before P 2,000 P 1,400 P 3,400 taxes > Comat, Writs Assuming that the customers purchase composi (Gontor four baubles and three trinkets, the breakeven output for the two products would be Baubles: 6,909 Trinkets: 6,909 Baubles: 5,000 Trinkets: 8,000 Baubles: 6,909 Trinkets: 5,182 Baubles: 6,109 Trinkets: 5.982 No Answer rz5 ~ G90 tee HOOD Lp, oa y O-G2BSF14 "lings 5182A quarrer ane giveh sneer [Quarter [Maintenance Costs [Machine Hous lst quarter 1.320.000 E land quarter Cease bra avrter 1.52609 46.000) Temombly ang banong How much she expected mintnance costs fr November 2020. the expected machine hous 38000? 72099800 ironies ™ i Someting Ese ‘aeresaocers ° Witt Nodnswer {srecanens s* a tae3co = K2GCOU , 19%300 1) oF VeHM GZ,000 - 4G.000 1G,C0O J31B 300 TO ren) = O% I.018tS xG2,cc0~ THSIC2.5 WO, oo S18 = 924,249 593, 134-5 TRO wo s 29G,C18 = (2.018 FY x 33,000 = 420,993 } 1,WC unipccrio = GO,C00 micohoN 132, 1 FU, (200 E00 XO.GG .....) 192.1 ——_——___—_ SS We a tF4 ° a 026 | ‘Attempis: 386 out of 322 200/000 ¢ x a Pipe, Ine, tits current production capacity of 200.00 mac At this point total overhead costs amounted to S6OpE-A this amount 360,000 aroun to depreciation expense. Inspection costs 40,00 (ll viable > How muchis the variable cost per Michie hour? 2 > Ye TOTAL YA 096 ts rewodes we a a ws - 140, ~— 64,000 TOH 660,000 Qe Ie COO Ic ee Ley. Ar- Ke 200.00 -— BS:00O Fepeciahen — BOO. ( Fixecl) lew! Go mpection = GO,00.— (variable pec. UT5;00% I Communication |MOca (Hixeol) ve v Se | rxtuto the podbction manage of Moneys has deen that they are ea operating at a ul epi QG00 oN) Ben the sles manage cle ring the dota sei oe REeryitenn requested by a notable customer, Arturito explained the they are already operating at fll capacity. The two managers met with the Company's management accountant and explained the situation. According FO TRe managerial accountant, there are several possible ways in order for them to deliver the special order outside the full capacity, namely: oe p> ster variole caste 1. Rent addtional equipment that wouldada r ed costs and increase the Company's production capacity to 100,000 units. 2, Render overtime hours to produce the special order, With the TUTent workforce ofthe Company, any units produced above the inital capacity of 4.000 units will quire an addition 20%) ‘current workforce of the Company, including overtime sable to handle equipment to produce an addtional 60.000 units. Above Ws threshold atutional workers ae needed. 3, Purchase ational equipment costing P1,000,000. The company uses the straight-line method of depreciation, This would increase the Company’s production capacity by 250.000 unis he hours required per unit. The After hours of brainstorming, the managers and the accountant think that it would be best if they would rent out temporary equipment and have the workers render overtime hours. vw HanyF cat The cmp ss eda (ape ef wert cerenpotioncxsotMomons 2 FC 2 See varainit ae soem [Manufacturing costs Costs SE ons ¥ 9 40.000 | woraug ~00100) [Direct Material 7 P20 per unit 28-9 (36*8) cay GY 59-2 Direc labor 7P8 perDL hours) 3 = 24 ie evontnny Fixect How much the break-even point in sales? Cost FUNCTION) 7 Pertced cats break-even cots soo0000 IT aoe Seneting the omens a ea sTresonins a Annual TPC= 960,000 Produck cass 240 000 (20.@@xl) Ponacd coll 1, 200 ,OO VCU * 93 Product cot - FF (Ito xlol.) Period cola VOU No Go 7 A = 6.3520... cp 170 \ Wo _ 1;20OQ30 cuu = «GO [, Ber __ =| 3,400 (000 0. 352941 GPlease use the information in SadBoi Company, (2200p much is the percentage increase in profit if units sold increases Kano the following year? Assuming the Company is currently produ 0.00 Something Else No Answer CE = 23,000 x ol. «acteaye | 1200 inctea? out sie 24QD 45,200 = 3h, 200 TO, 000 — 28/0. x Teleyp\t wongE