ACCT 526 MANAGERIAL ACCOUNTING FINAL EXAM | ACCT 526
FINAL EXAM | UNIVERSITY OF LOUISIANA QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES || 100% GUARANTEED PASS!!
LATEST VERSION
Question 1
A company sells a product for $80 per unit. Variable cost per unit is $50, and total
fixed costs are $180,000. What is the break-even point in units?
A. 3,000
B. 4,500
C. 6,000
D. 9,000
Correct Answer: C
Rationale:
Contribution margin per unit = $80 − $50 = $30.
Break-even units = $180,000 ÷ $30 = 6,000 units.
Question 2
,Using the data from Question 1, what is the break-even point in sales dollars?
A. $360,000
B. $420,000
C. $480,000
D. $600,000
Correct Answer: C
Rationale:
Break-even sales = 6,000 units × $80 = $480,000.
Question 3
If fixed costs increase by $60,000 while selling price and variable costs remain
unchanged, how many additional units must be sold to maintain the same profit
level?
A. 1,000
B. 1,500
C. 2,000
D. 2,500
,Correct Answer: C
Rationale:
Additional units required = $60,000 ÷ $30 contribution margin = 2,000 units.
Question 4
A company has a contribution margin ratio of 35%. Fixed costs are $280,000.
What level of sales is required to earn an operating income of $70,000?
A. $800,000
B. $900,000
C. $1,000,000
D. $1,200,000
Correct Answer: C
Rationale:
Required sales = (Fixed costs + Target income) ÷ CM ratio
= ($280,000 + $70,000) ÷ 0.35 = $1,000,000.
Question 5
, Which cost must be ignored when performing cost-volume-profit analysis?
A. Variable manufacturing costs
B. Fixed selling costs
C. Mixed costs
D. Allocated common fixed costs
Correct Answer: D
Rationale:
Allocated common fixed costs do not change with volume and distort CVP
analysis. CVP focuses on traceable fixed and variable costs.
Question 6
A product line shows the following information:
Sales: $500,000
Variable costs: $320,000
FINAL EXAM | UNIVERSITY OF LOUISIANA QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES || 100% GUARANTEED PASS!!
LATEST VERSION
Question 1
A company sells a product for $80 per unit. Variable cost per unit is $50, and total
fixed costs are $180,000. What is the break-even point in units?
A. 3,000
B. 4,500
C. 6,000
D. 9,000
Correct Answer: C
Rationale:
Contribution margin per unit = $80 − $50 = $30.
Break-even units = $180,000 ÷ $30 = 6,000 units.
Question 2
,Using the data from Question 1, what is the break-even point in sales dollars?
A. $360,000
B. $420,000
C. $480,000
D. $600,000
Correct Answer: C
Rationale:
Break-even sales = 6,000 units × $80 = $480,000.
Question 3
If fixed costs increase by $60,000 while selling price and variable costs remain
unchanged, how many additional units must be sold to maintain the same profit
level?
A. 1,000
B. 1,500
C. 2,000
D. 2,500
,Correct Answer: C
Rationale:
Additional units required = $60,000 ÷ $30 contribution margin = 2,000 units.
Question 4
A company has a contribution margin ratio of 35%. Fixed costs are $280,000.
What level of sales is required to earn an operating income of $70,000?
A. $800,000
B. $900,000
C. $1,000,000
D. $1,200,000
Correct Answer: C
Rationale:
Required sales = (Fixed costs + Target income) ÷ CM ratio
= ($280,000 + $70,000) ÷ 0.35 = $1,000,000.
Question 5
, Which cost must be ignored when performing cost-volume-profit analysis?
A. Variable manufacturing costs
B. Fixed selling costs
C. Mixed costs
D. Allocated common fixed costs
Correct Answer: D
Rationale:
Allocated common fixed costs do not change with volume and distort CVP
analysis. CVP focuses on traceable fixed and variable costs.
Question 6
A product line shows the following information:
Sales: $500,000
Variable costs: $320,000
