Quiz Summary
0 of 15 Questions completed
Questions:
Information
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
Results
Results
0 of 15 Questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- Current
- Review
- Answered
- Correct
- Incorrect
-
Question 1 of 15
1. Question
From the options below, select the most complete and accurate definition of “the margin of safety”.
CorrectIncorrect -
Question 2 of 15
2. Question
A company has three products with the following contribution to sales ratios:
– Product A: 40%
– Product B: 50%
– Product C: 54%If the product mix in sales value is 40% Product A, 25% Product B and 35% Product C, what is the overall contribution to sales ratio?
Give your answer to the nearest 0.1%.
%
CorrectIncorrect -
Question 3 of 15
3. Question
Jazzo Ltd sells three products. The budgeted fixed cost for the period is $235,000. The budgeted contribution to sales ratio (C/S ratio) and sales mix are as follows:
Product C/S ratio Mix Jazz-A 22% 30% Jazz-B 51% 30% Jazz-C 33% 40% The breakeven sales revenue is nearest to:
CorrectIncorrect -
Question 4 of 15
4. Question
L Plc sells three products, details of which are as follows:
C/S ratio Product mix Product P 50% 2 Product Q 45% 3 Product R 30% 5 If the yearly fixed cost is £1,000,000, the yearly breakeven sales revenue, to the nearest £1, will be:
CorrectIncorrect -
Question 5 of 15
5. Question
What does the line labelled Y represent in the breakeven chart presented below?
CorrectIncorrect -
Question 6 of 15
6. Question
HG plc manufactures four products. The unit cost, selling price and bottleneck resource details per unit are as follows:
Product W Product X Product Y Product Z £ £ £ £ Selling price 56 67 89 96 Material 22 31 38 46 Labour 15 20 18 24 Variable overhead 12 15 18 15 Fixed overhead 4 2 8 7 Minutes Minutes Minutes Minutes Bottleneck resource time 10 10 15 15 Assuming that labour is a unit variable cost, if budgeted unit sales are in the ratio W:2, X:3, Y:3, Z:4 and monthly fixed costs are budgeted to be £15,000, the number of units of W that would be sold at the budgeted breakeven point is nearest to:
CorrectIncorrect -
Question 7 of 15
7. Question
From the options below, select what is represented by the vertical intercept on a P/V chart.
(i) Maximum loss possible
(ii) Total Fixed costs
(iii) Breakeven point
(iv) Zero sales volumeCorrectIncorrect -
Question 8 of 15
8. Question
A small manufacturer sells products E, F & G in the market. The contribution to sales ratio for product E is 40%, for product F is 35% and the total contribution to sales ratio is 50%. The products are sold in the same quantity and at the same selling price in the market.
If fixed costs remain unaffected by the product mix and currently equal 40% of sales, the effect of changing the product mix to E: 30%, F: 25% & G: 45% is that the total contribution to total sales ratio changes to:
% (round all decimals to the nearest whole number).
CorrectIncorrect -
Question 9 of 15
9. Question
A company’s summary budgeted operating statement is as follows:
– Revenue: $200,000
– Variable costs: $120,000
– Fixed costs: $50,000
– Profit: $30,000Assuming that the sales mix does not change, the percentage increase in sales volume that would be needed to increase the profit by $20,000 is:
CorrectIncorrect -
Question 10 of 15
10. Question
T Inc. has invested $60,000 in new machinery for a new product. They are a publicly traded company and they have a cost of capital of 12%. The product they plan to make is a handheld mini welder and would be an innovative product in the market. Market research has shown that there is a demand for such a product, since there is a gap as a result of unfulfilled consumer needs.
As such, the market research team believes they will be able to price these mini welders at an RRP of $80 per unit. Production is due to begin next week, and the production manager feels that as it is a completely new product, production may be slow to begin with. The company thinks that the variable cost per unit will be around $50.
Given the information above, T Inc. must produce and sell units in order to break even (input answer without commas).
CorrectIncorrect -
Question 11 of 15
11. Question
L Co. manufactures a product that has a selling price of $12 and variable costs of $4 per unit, and incurs annual fixed costs of $22,600. Annual sales demand is 6,000 units. A new production method is currently under consideration that would increase fixed costs by 20%, but would reduce variable costs to $3 per unit.The superior quality of the finished product would enable sales to be increased to 7,500 units per annum at a price of $13 each.
If the change in production method were to take place, the breakeven output level would be:
CorrectIncorrect -
Question 12 of 15
12. Question
From the options below, select the factors whose changes affect future profit in the context of CVP analysis.
CorrectIncorrect -
Question 13 of 15
13. Question
From the options below, choose how a decrease in fixed costs will affect the point at which the profit line intersects the vertical axis in a P/V graph
CorrectIncorrect -
Question 14 of 15
14. Question
Fowler Ltd sells three products: D, E and F. The products are sold in the proportions D:E:F = 1:2:4.
Monthly fixed costs are €42,500 and product details are as follows:
Product Selling price Variable cost € per unit € per unit D 42 22 E 34 17 F 23 8 The company wishes to earn a profit of €36,160 next month. What is the required sales value of product D in order to achieve this target profit?
CorrectIncorrect -
Question 15 of 15
15. Question
Sarri Plc produces and sells three products, X, Y and Z. It has contracts to supply products X and Y, which will utilise all of the specific materials that are available to make these two products during the next period. The revenue these contracts will generate and the contribution to sales (c/s) ratios of products X and Y are as follows:
Revenue C/S ratio Product X £10 million 15% Product Y £20 million 10% Product Z has a c/s ratio of 25%.
The total fixed costs of Sarri Plc are £5.5 million during the next period and management have budgeted to earn a profit of £1 million. Calculate the revenue that needs to be generated by Product Z for Sarri Plc to achieve the budgeted profit:
£ million.
CorrectIncorrect
