Contribution Margin
CVP Analysis
Product Mix
Absorption vs. Variable Costing
Misc.
100
The total contribution margin for Pluto Hand Blenders Company considering they sold 2,000 units in October at a price of $35 per unit. The variable cost is $20 per unit.
What is $30,000?
100
This is the operating income at which sales revenue minus variable and fixed costs equals management's profit goal.
What is target profit?
100
The number of jet boats and ski boats Jackson Mfg. needs to sell to break even considering jet boats sell for $8,000, ski boats sell for $20,000, variable costs for jet boats and ski boats are $4,800 and $14,000 respectively and the company sells five jet boats for every two ski boats. Fixed costs are $280,000.
What are 50 jet boats and 20 ski boats?
100
These are the costs included in product cost under absorption costing.
What are direct materials, direct labor, variable manufacturing overhead and fixed manufacturing overhead?
100
This is the effect on contribution margin and breakeven point when selling price per unit decreases.
What is a decrease in contribution margin and an increase in the breakeven point?
200
The contribution margin considering Jupiter Inc. reports sales revenue of $800,000, variable costs of $200,000, and fixed costs of $100,000.
What is $600,000?
200
The effect on breakeven point if fixed costs go from $832,500 to $810,000 given sale price per unit of $40 and variable cost per unit of $25.
What is the breakeven point will decrease by 1,500 units.
200
The weighted-average unit contribution margin given that a company sells two products A & B. It expects to sell 7,200 units of Product A and 5,600 units of Product B. The unit contribution margins are $2.85 and $6.30 respectively.
What is $4.36 per product?
200
Unlike absorption costing, this cost is treated as a period cost under variable costing.
What is fixed manufacturing overhead?
200
This is the affect on contribution margin and breakeven point when fixed costs increase.
What is no effect on contribution margin and an increase in the breakeven point?
300
This is a type of income statement that classifies costs by behavior.
What is a contribution margin income statement?
300
The total revenue amount a company needs to earn to break even given a sales price of $25, fixed costs of $30, and variable cost of $15.
What is $75?
300
This is the effect on operating income if a company with $832,500 in fixed costs, $40 selling price per unit, and $25 variable cost per unit spends an additional $30,000 on advertising and expects sales volume to increase by 2,500 units.
What is operating income will increase by $7,500?
300
This is the type of income statement used under variable costing.
What is a contribution margin income statement?
300
This is the date and order when Georgia became a state.
What is Jan. 2, 1788 and the 4th state of the original 13 colonies?
400
This is the contribution margin income statement if a company sells 200 units at a price of $100 per unit, $40 per unit variable cost, and $6,000 in fixed costs.
What is: Sales $20,000 Variable Costs (8,000) CM $12,000 Fixed Costs (6,000) Operating Income $6,000
400
The contribution margin given that a company sells 750 units at a price of $600 per unit and variable cost per unit of $480.
What is 20%?
400
This is the number of times operating income will change in relation to the percentage change in sales.
What is operating leverage?
400
If a company produces more units than it sells, this method of costing will produce the higher operating income.
What is absorption costing?
400
This is the percentage change in operating income if operating leverage is 2.67 and sales increase by 15%.
What is 40%?
500
The contribution margin per unit and in total considering a company sells 500 units of a product for $50 per unit, variable costs are $30 per unit, and fixed costs of $2,000 per month.
What is $20 CM per unit and $10,000 CM total?
500
This is the margin of safety in dollars if a company sells it's product for $1.50 per unit, has variable costs of $0.90, breakeven units of 3,000 and expected unit sales of 4,300.
What is $1,950?
500
This is a company's proportion of fixed costs to variable costs.
What is cost structure?
500
This is why variable costing will produce higher operating income when a company sells more than it produces.
What is fixed manufacturing overhead is treated as a period cost under variable costing, thus providing a lower expense when less units are produced than sold?
500
When setting sales prices these are the time frames under which absorption vs. variable costing should be used.
What are absorption costing for long run decisions and variable costing for short run decisions?
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