If fixed costs are $600,000 and the unit contribution margin is $12, what amount of units must be sold in order to realize an operating income of $100,000? a. 33,334 b. 58,334 c. 50,000 d. 41,667

If fixed costs are $600,000 and the unit contribution margin is $12, what amount of units must be sold in order to realize an operating income of $100,000?
                a.            33,334
                b.            58,334
                c.             50,000
                d.            41,667
Answer
58,334 

If fixed costs are $850,000 and variable costs are 70% of sales, what is the break-even point (in dollars)? a. $2,550,000 b. $1,983,333 c. $1,214,286 d. $2,833,333

If fixed costs are $850,000 and variable costs are 70% of sales, what is the break-even point (in dollars)?
                a.            $2,550,000         
                b.            $1,983,333         
                c.             $1,214,286         
                d.            $2,833,333         
Answer
$1,214,286

If sales are $820,000, variable costs are 68% of sales, and operating income is $260,000, what is the contribution margin ratio? a. 53% b. 32% c. 47% d. 38%

If sales are $820,000, variable costs are 68% of sales, and operating income is $260,000, what is the contribution margin ratio?
                a.            53%      
                b.            32%      
                c.             47%      
                d.            38%
Answer
32%

Variable costs as a percentage of sales for Leamon Inc. are 75%, current sales are $600,000, and fixed costs are $110,000. How much will operating income change if sales increase by $50,000? a. $37,500 decrease b. $12,500 increase c. $12,500 decrease d. $37,500 increase

Variable costs as a percentage of sales for Leamon Inc. are 75%, current sales are $600,000, and fixed costs are $110,000. How much will operating income change if sales increase by $50,000?
                a.            $37,500 decrease           
                b.            $12,500 increase             
                c.             $12,500 decrease           
                d.            $37,500 increase
Answer
$12,500 increase

Which of the following describes the behavior of the variable cost per unit? a. Remains constant with changes in production b. Decreases with decreasing production c. Decreases with increasing production d. Increases with increasing production

Which of the following describes the behavior of the variable cost per unit?
                a.            Remains constant with changes in production  
                b.            Decreases with decreasing production
                c.             Decreases with increasing production  
                d.            Increases with increasing production
Answer
Remains constant with changes in production  

The recording of the jobs completed would decrease a. Cost of Goods Sold. b. Work in Process. c. Factory Overhead. d. Finished Goods

The recording of the jobs completed would decrease
                a.            Cost of Goods Sold.      
                b.            Work in Process.            
                c.             Factory Overhead.        
                d.            Finished Goods
Answer
Work in Process.

Assets normally show debit balances. debit and credit balances. debit or credit balances. credit balances.

Assets normally show

debit balances.

debit and credit balances.

debit or credit balances.

credit balances.

Solution
debit balances.