1. Jensen Company manufactures and sells a single product with a


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Managerial Accounting H/W assignment All multiple choice No need to show work $30 + $60 tip at the end Homework 2.docx 1. Jensen Company manufactures and sells a single product with a positive contribution margin. If the selling price and the variable expense per unit both increase 5% and fixed expenses do not change, what is the effect on the contribution margin per unit and the contribution margin ratio? Contribution margin per unit Contribution margin ratio Option A No change No change Option B Increase Increase Option C Increase No change Option D Increase Decrease Select One: Option A Option D Option C Option B 2. Break­even analysis assumes that (choose one): The average variable expense per unit is constant. Total costs are constant. The average fixed expense per unit is constant. Variable expenses are nonlinear. 3. If Q equals the level of output, P is the selling price per unit, V is the variable expense per unit, and F is the fixed expense, then the break­even point in units is (choose one): F ÷ (P­V) Q ÷ (P­V) V ÷ (P­V) F ÷ [Q(P­V)] 4. All other things the same, which of the following would be true of the contribution margin and variable expenses of a company with high fixed costs and low variable costs as compared to a company with low fixed costs and high variable costs? CHOOSE ONE OPTION: Contribution Margin Variable Costs Option A Higher Higher Option B Lower Higher Option C Higher Lower Option D Lower Lower Franklin Company has a margin of safety percentage of 20% based on its actual sales. The break­even point is $200,000 and the variable expenses are 45% of sales. Given this information, the actual profit is (Choose one): $18,000 $22,500 $22,000 $27,500 ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ 6. A company has provided the following data: Sales 3,000 units Sales price $70 per unit Variable cost $50 per unit Fixed cost $25,000 If the sales volume decreases by 25%, the variable cost per unit increases by 15%, and all other factors remain the same, net operating income will (choose one): increase by $20,625. decrease by $31,875. decrease by $3,125. decrease by $15,000. Sprockets Corporation has provided the following cost data for last year when 100,000 units were produced and sold: Raw materials $200,000 Direct labor $100,000 Manufacturing overhead $200,000 Selling and administrative expense $150,000 All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense. There are no beginning or ending inventories. If the selling price is $10 per unit, the net operating income from producing and selling 110,000 units would be (Choose One): $450,000 $560,000 $405,000 $385,000 8. Valentine Company had the following income statement for the most recent year: Sales (17,000 units) Variable expenses Contribution margin $357,000 $255,000 $102,000 Fixed expenses $68,000 Net operating income $34,000 Given this data, the unit contribution margin was (Choose One): $6 per unit $2 per unit $4 per unit $15 per unit 9. Butaffuco Corporation has provided its contribution format income statement for January. The company produces and sells a single product. Sales (2,900 units) Variable expenses Contribution margin $269,700 $107,300 $162,400 Fixed expenses $137,100 Net operating income $25,300 If the company sells 3,100 units, its total contribution margin should be closest to (Choose one): $181,000 $173,600 $162,400 $24,047 ­­­­­­­­­­­­ 10. Greasy Inc. produces and sells a single product. The company has provided its contribution format income statement for May. Sales (4,500 units) $427,500 Variable expenses $265,500 Contribution margin $162,000 Fixed expenses $135,300 Net operating income $26,700 If the company sells 4,300 units, its net operating income should be closest to (choose one): $26,700 $19,500 $25,513 $7,700 11. The Simpson Company manufactures and sells a single product which sells for $50 per unit and has a contr

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