MBA 700 Exam 5 Questions With Approved Answers

MBA 700 Exam 5 Questions With Approved Answers

Increases and decreases in the volume of units produced (within a relevant
range): Correct Answer - Will impact total variable cost but not total
fixed cos

In describing the cost formula equation, Y = a + bX, which of the following is
correct: Correct Answer - "X" is the number of units

Schister Systems uses the following data in its Cost-Volume-Profit analyses:



Total
Sales
$
400,000
Variable expenses

280,000
Contribution margin

120,000
Fixed expenses

100,000
Net operating income
$
20,000

What is total contribution margin if sales volume increases by 20%? Correct
Answer - 144,000

Stockmaster Corporation has provided the following contribution format
income statement. Assume that the following information is within the
relevant range.

, Sales (8,000 units)
$
320,000
Variable expenses

192,000
Contribution margin

128,000
Fixed expenses

121,600
Net operating income
$
6,400


The margin of safety in dollars is closest to: Correct Answer - $16,000

Hedman Corporation has provided the following contribution format income
statement. Assume that the following information is within the relevant range.




Sales (9,000 units)
$
270,000
Variable expenses

202,500
Contribution margin

67,500
Fixed expenses