CVP, Curvilinear costs, break even, operating range, target

Question 1
The relevant range of operations excludes extremely high and low levels of production that are not likely to occur.
True
False

Question 2
Curvilinear costs are also known as nonlinear costs.
True
False

Don't use plagiarized sources. Get Your Custom Essay on
CVP, Curvilinear costs, break even, operating range, target
From $10/Page
Order Essay

Question 3
The margin of safety is the excess of:
Break-even sales over expected sales.
Expected sales over variable costs.
Expected sales over fixed costs.
Fixed costs over expected sales.
Expected sales over breakeven sales.

Question 4
Curvilinear costs always increase:
With decreases in volume.
In constant proportion to changes in production levels.
When management performs break-even analysis.
When volume increases, but not at a constant rate.
On a per unit basis when volume of activity goes down.

Question 5
A cost that remains the same in total even when volume of activity varies is a:
Fixed cost.
Curvilinear cost.
Variable cost.
Step-wise variable cost.
Standard cost.

Question 6
A company’s normal operating range, which excludes extremely high and low volumes that are not likely to occur, is called the:
Margin of safety.
Contribution range.
Break-even point.
Relevant range.
High-low point.

Question 7
Brown Company’s contribution margin ratio is 24%. Total fixed costs are $84,000. What is Brown’s break-even point in sales dollars?
$20,160.
$110,526.
$350,000.
$240,000.
$84,000.

Question 8
A target income refers to:
Income at the break-even point.
Income from the most recent period.
Income planned for a future period.
Income only in a multiproduct environment.
Income at the minimum contribution margin.

Question 9
Lee Company manufactures and sells widgets for $2.00 per unit. Its variable cost per unit is $1.70. Lee’s total fixed costs are $10,500. How many widgets must Lee Company sell to break even?
5,250.
6,176.
35,000.
52,500.
61,760.

Question 10
A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. What is the break-even point in dollar sales?
$ 2,100.
$ 6,000.
$ 420,000.
$ 646,154.
$1,200,000.

Question 11
Management of a company is evaluating two potential orders. Due to limited capacity only one of these orders can be accepted. Incremental fixed costs are the same for either option. Based on the information in the table below which of the following statements is true?

Option B has the highest contribution margin per unit.
Option A has the highest total contribution margin.
Option B has the lowest contribution margin ratio.
Option B has the highest total contribution margin.
Option A has the highest amount per dollar of sales to contribute to contribution margin and profit.

Question 12
The Haskins Company manufactures and sells radios. Each radio sells for $23.75 and the variable cost per unit is $16.25. Haskin’s total fixed costs are $25,000, and budgeted sales are 8,000 units. What is the contribution margin per unit?
$7.50.
$16.25.
$23.75.
$60,000.
$1.25

Question 13
The break-even point is the sales level at which a company neither earns a profit nor incurs a loss.
True
False

Question 14
When graphing cost-volume-profit data on a CVP chart:
Units are plotted on the horizontal axis; costs on the vertical axis.
Units are plotted on the vertical axis; costs on the horizontal axis.
Both units and costs are plotted on the horizontal axis.
Both units and cost are plotted on the vertical axis.
Data points always represent expected future points.

Question 15
Which one of the following statements is not true?
Total fixed costs remain the same regardless of volume.
Total variable costs change with volume.
Total variable costs decrease as the volume increases.
Fixed costs per unit increase as the volume decreases.
Variable costs per unit remain the same regardless of the volume.

Question 16
During the past year a company had total fixed costs of $70,000. Its product sold for $9 per unit. Variable costs during this time equaled $5 per unit. Next year the company is anticipating a 4% increase in total fixed costs and a $1 per unit decrease in variable costs, but would like to maintain its current selling price per unit. How many units must the company sell next year to earn $1,000,000? (Round answer to complete units.)
119,200.
200,000.
214,560.
268,200.
18,200.

Question 17
Cost-volume-profit analysis is frequently based on the assumption that the production level is the same as the sales level.
True
False

Question 18
A cost that can be separated into fixed and variable components is called a:
Mixed cost.
Step-variable cost.
Composite cost.
Curvilinear cost.
Differential cost.

Question 19
The sales level at which a company neither earns a profit nor incurs a loss is the:
Relevant range.
Margin of safety.
Step-wise variable level.
Break-even point.
Contribution margin.

Question 20
Ginger Company’s product has a contribution margin per unit of $11.25 and a contribution margin ratio of 22.5%. What is the selling price of the product?
$ 5.
$20.
$30.
$40.
$50.

© BrainMass Inc. brainmass.com March 4, 2021, 8:56 pm ad1c9bdddf
https://brainmass.com/business/financial-ratios/cvp-curvilinear-costs-break-even-operating-range-target-204232
Solution Preview
Question 1
The relevant range of operations excludes extremely high and low levels of production that are not likely to occur.
True
False

True

Question 2
Curvilinear costs are also known as nonlinear costs.
True
False

True

Question 3
The margin of safety is the excess of:
Break-even sales over expected sales.
Expected sales over variable costs.
Expected sales over fixed costs.
Fixed costs over expected sales.
Expected sales over breakeven sales.

Expected sales over breakeven sales.

Question 4
Curvilinear costs always increase:
With decreases in volume.
In constant proportion to changes in production levels.
When management performs break-even analysis.
When volume increases, but not at a constant rate.
On a per unit basis when volume of activity goes down.

When volume increases, but not at a constant rate.

Question 5
A cost that remains the same in total even when volume of activity varies is a:
Fixed cost.
Curvilinear cost.
Variable cost.
Step-wise variable cost.
Standard cost.

Fixed cost.

Question 6
A company’s normal operating range, which excludes extremely high and low volumes that are not likely to occur, is called the:
Margin of safety.
Contribution range.
Break-even point.
Relevant range.
High-low point.

Relevant range.

Question 7
Brown Company’s contribution margin ratio is 24%. Total fixed costs are $84,000. What is Brown’s break-even point in sales dollars?
$20,160. …To continue with the answer check on mycoursewriter.com/

 

MyCourseWriter
Order NOW For A 35% Discount!
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Homework Writing

Do you need to ace your test? We have qualified writers to assist you in writing 100% quality homework writing. Mycoursewriter offers students unique and personalized custom papers that help them in getting good grades. Our academic experts will assist you with your dissertation papers, thesis writing, research papers, term papers, and case study homework help. Our writers are experienced and have perfected the art of crafting the best essay writing papers regardless of your academic level. Order now and get our superb homework writing services.

Expert Academic Writers

A student needs professional assistance outside class time. Before hiring our writers, they undergo thorough tests and strict educational backgrounds. After passing a test, our writers undergo training to ensure they deliver expert professional papers to our customers. We ensure they meet the timely delivery of papers and follow our customers' provided instructions. Every writer is an ENL writer and is from the USA, Canada, UK, or Australia. Our experts approach papers effectively depending on their area of specialization.

Affordable Price Guarantees

Is the deal too good to be true? Mycoursewriter is the most affordable assignment help website on the market. We consider students' daily needs for academic help. Our paper costs are reasonably priced to approximately 90% of students around the globe. Our main aim is to ensure students achieve academic excellence, and we believe inconsiderable prices should not hinder students from getting quality homework writing help. In case of any dissatisfaction, we offer unlimited revisions and rewrites without extra charges.

Timely delivery of papers

Tight deadline? Is your paper due in the next few hours? Worry no more. Our writers are here for your rescue. Many college students find it hard to balance their social and academic life and get caught up with academic deadlines. Drafting your paper at the last minute does not allow you to conduct extensive research and craft the correct answers. We have expert writers ready to work on your assignment writing. Urgent writing services are the ultimate solutions you need. We guarantee you timely delivery of papers at your convenience and specified time delivery of the customer.

100% Original Tasks

The ultimate deal-breaker in achieving good grades is submitting imitative papers. Plagiarism is a breach of examination standards and has serious consequences. Students need to deliver papers written in their understanding by paraphrasing their research findings and relevant citations. Our expert's primary consideration is providing free plagiarized papers that meet the lecturers' requirements. Our editors will proofread your paper before delivery ad ensure your papers will not be substandard. We guarantee extreme originality, and in case of any customer concerns, we offer a plagiarism report.

All Round the clock Customer Support

Our website is user-friendly and super useful! Mycoursewriter is the most trusted online writing website always available to provide you with assignment writing services that you need. Our primary concern is meeting customer need specifications by our friendly customer support team that Is available all the time. Our website usability is self-learnable but in case of any problem, feel free to contact us directly through our website email: support@mycourserwiter.com. We have diligently satisfied thousands of students, and you can witness this on our sites' review page.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Advantages of Using Our Assignment writing Services

Mycoursewriter welcomes you for superb essay writing services. We are a legit site offering help with your most challenging homework writing assignments at affordable prices. Your essay paper will be assigned to a professional writer who will craft the paper from scratch according to your provided instructions.

Essays

Essay Writing and Proofreading Services

Essay writing is a common assignment writing for most college students. It takes a lot of time to craft a complete perfect essay. Mycourserwiter offers the best essay writing and proofreading services for most college students. Your paper is assigned to an expert writer who does thorough research on fresh ideas and personalizes your essay paper according to your assignment writing guidelines. Our essays are entirely exceptional and undergo a strict procedure that includes papers free from plagiarism and thorough proofreading.

Admissions

Admission and Business Papers

Writing an admission paper is not every student's desire, and this should not hinder any student from earning an admission. Writing a perfect personal statement to earn a position in a dream school or job can be stressful. Personal statements should display a high level of confidence and uniqueness. Admission essays require you to have a vast knowledge of the current happenings in the world and knowhow of the business world. We have qualified writers with skills who will write your admission paper through comprehensive research. All you have to do is provide us with little details about yourself, instructions and our writers will craft a perfect paper for you.

Editing

Editing and Proofreading

Mycoursewriter offers you assignment writing services free from grammatical and formatting mistakes. An error-free paper is significant in scoring the desired maximum grades. We have a team of editors who will go through your paper after our expert writers have delivered their fully crafted papers. Our writers will cover all the aspects of your paper instructions, such as fonts, spacing, and educational formats. Our team of editors will check through your paper to make sure it meets the formatting style provided in the paper instructions. Under no circumstances will a poorly formatted paper will be forwarded to you as our team of editors will ensure careful proofreading.

Coursework

Technical Papers

Assignment writing is part of a learning process, and one may not have the knowledge to answer all questions correctly. This should not be a stress to you as we have qualified essay writing experts to help you. Our qualified writers are holders of PhDs, Degrees, and Masters in different areas of study and can handle any papers regardless of the complexity. Multiple assignments may be challenging to finish on time. Our skilled professional writers are here to assist you in crafting all the correct answers for your assignment. Stop stressing about your homework writing and place an order with us, and our expert writers will provide you with the best assignment help.