©EVERLY 2025 ALL RIGHTS RESERVED
SPMA 3P27 Final Exam Questions And
Answers 100% Pass
= total fixed expenses / weighted avg selling price - weighted average variable expenses -
ANS Breakeven Point
After tax profit/ (1- tax rate) - ANS After Tax Formula
Contribution per unit / selling price per unit - ANS Contribution Margin Ratio Formula
Selling price per unit - variable cost per unit - ANS Contribution Margin Formula
Difference between selling price per unit and the variable cost per unit - ANS Contribution
Margin
Provides insights for effective planning, budgeting, and decision making - ANS CPV (Cost
Volume Profit)
Total costs and revenue - ANS Breakeven Point
= (your average price - average price)/average price - ANS Premium and Discount Price
Formula
would be a positive number - ANS Premium
, ©EVERLY 2025 ALL RIGHTS RESERVED
would be a negative number - ANS DIscount
What is the minimum price you would charge as a company with $15,000 in variable costs,
$18,000 in Fixed Costs, and a desire for $8,000 in contingencies (i.e. owner salary), assuming
you produce 800 units per year? - ANS $51.25
What is the MINIMUM price for a sport hat company to charge when producing 1500 units per
month with $20,000 Fixed Costs and $3 per unit variable costs? - ANS $16.3
When managers are required to justify all budgeting expenditures - ANS Zero Based Budget
Cost of activities needed to produce goods and services - ANS Activity Based budgeting
What are the goals of Red Ocean? - ANS Beat competition
What are the goals of Blue Ocean? - ANS Make competition relevant
Blue Ocean - ANS uncontested market space
Red Ocean - ANS Competing in an existing market
Examples of Blue Ocean - ANS eBay
Examples of Red Ocean - ANS Cirque Du Soleil, Marvel
How do you create a blue ocean? - ANS Creating a completely new industry
SPMA 3P27 Final Exam Questions And
Answers 100% Pass
= total fixed expenses / weighted avg selling price - weighted average variable expenses -
ANS Breakeven Point
After tax profit/ (1- tax rate) - ANS After Tax Formula
Contribution per unit / selling price per unit - ANS Contribution Margin Ratio Formula
Selling price per unit - variable cost per unit - ANS Contribution Margin Formula
Difference between selling price per unit and the variable cost per unit - ANS Contribution
Margin
Provides insights for effective planning, budgeting, and decision making - ANS CPV (Cost
Volume Profit)
Total costs and revenue - ANS Breakeven Point
= (your average price - average price)/average price - ANS Premium and Discount Price
Formula
would be a positive number - ANS Premium
, ©EVERLY 2025 ALL RIGHTS RESERVED
would be a negative number - ANS DIscount
What is the minimum price you would charge as a company with $15,000 in variable costs,
$18,000 in Fixed Costs, and a desire for $8,000 in contingencies (i.e. owner salary), assuming
you produce 800 units per year? - ANS $51.25
What is the MINIMUM price for a sport hat company to charge when producing 1500 units per
month with $20,000 Fixed Costs and $3 per unit variable costs? - ANS $16.3
When managers are required to justify all budgeting expenditures - ANS Zero Based Budget
Cost of activities needed to produce goods and services - ANS Activity Based budgeting
What are the goals of Red Ocean? - ANS Beat competition
What are the goals of Blue Ocean? - ANS Make competition relevant
Blue Ocean - ANS uncontested market space
Red Ocean - ANS Competing in an existing market
Examples of Blue Ocean - ANS eBay
Examples of Red Ocean - ANS Cirque Du Soleil, Marvel
How do you create a blue ocean? - ANS Creating a completely new industry
