Chapter 3 test bank with answers Horngren\'s Cost Accounting: A Managerial Emphasis, 16th Global Edition PDF

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Cost Accounting: A Managerial Emphasis, 16e, Global Edition (Horngren)Chapter 3 Cost-Volume-Profit Analysis3 Objective 3.1) Managers use cost-volume-profit (CVP) analysis to ____. A) forecast the cost of capital for a given period of time B) to study the behavior of and relationship among the elemen...

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Cost Accounting: A Managerial Emphasis, 16e, Global Edition (Horngren) Cha pt e r3 Cos t Vol umePr ofitAna l ys i s 3 . 1 Obj e c t i ve3 . 1 1 )Ma na ge r sus ec os t vol ume pr ofit( CVP)a na l ys i st o_ _ __ _ __ _ . A)f or e c as tt hec os tofc a pi t a lf oragi ve npe r i odoft i me B)t os t udyt hebe ha vi orofa ndr e l a t i ons hi pa mongt hee l e me nt ss uc ha st ot alr e ve nue s ,t ot alc os t s ,a nd i nc ome C)e s t i ma t et her i s ksas s oc i a t e dwi t hagi ve nj ob D)ana l ys eafir m' spr ofit a bi l i t ya ndhe l pt ode c i dewe al t hdi s t r i but i ona mongi t ss t a ke hol de r s Ans we r :B Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

2 )Oneoft hefir s ts t e pst ot a kewhe nus i ngCVPa na l ys i st ohe l pmakede c i s i onsi s_ __ _ __ _ _. A)c a l c ul a t i ngt hebr e a ke ve npoi nt B)i de nt i f yi ngt heva r i a bl ea ndfix e dc os t s C)c al c ul a t i onoft hede gr e eofope r a t i ngl e ve r a gef ort hec ompany D)e s t i ma t i ngt hevol umeofs a l e st oma keagoodpr ofit Ans we r :B Di ff:2 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

3 )Whi c hoft hef ol l owi ngi st r ueofc os t vol ume pr ofitana l ys i s ? A)Thet he or ya s s ume st ha tal lc os t sa r evar i a bl e . B)Thet he or yas s ume st ha tuni t smanuf ac t ur e de qualuni t ss ol d. C)Thet he or ys t a t e st ha tt ot alva r i a bl ec os t sr e ma i nt hes a meove rar e l e va ntr a nge . D)Thet he or ys t a t e st ha tt ot a lc os t sr e mai nt hes ameove rt her e l e va ntr a nge . Ans we r :B Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

4 )Thes e l l i ngpr i c epe runi tl e s st heva r i a bl ec os tpe runi ti st he__ _ __ _ __ . A)fix e dc os tpe runi t B)gr os smar gi n C)ma r gi nofs a f e t y D)c ont r i but i onmar gi npe runi t Ans we r :D Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

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5 )I nt hegr a phme t hodofCVPanal ys i s ,__ _ __ _ __ . A)Thet ot alr e ve nuel i nes t ar t sa tt heor i gi nandt het ot alc os t sl i nes t a r t sa tt hefixe di nt e r c e pt . B)Theope r a t i ngi nc omel i nes t ar t sa tt heor i gi na ndt het ot a lc os t sl i nes t ar t sa tt hefixe di nt e r c e pt . C)Thebr e a ke ve npoi nti sa tt hefix e di nt e r c e ptwhe r et het ot alr e ve nue sl i nei nt e r s e c t s . D)Theope r a t i ngi nc omea r e ai st hes e c t i onwhe r et het ot alc os t sl i nei sa bovet het ot alr e ve nue sl i ne . Ans we r :A Di ff:2 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

6 )Whi c hoft hef ol l owi ngi sana s s umpt i onofCVPana l ys i s ? A)Tot a lc os t sc a nbedi vi de di nt oafix e dc ompone nta ndac ompone ntt ha ti sva r i abl ewi t hr e s pe c tt ot he l e ve lofout put . B)Whe ngr a phe d, t ot alc os t sc ur veupwar d. C)Theuni t s e l l i ngpr i c ei sva r i a bl easi ti ss ubj e c tt ode ma nda nds uppl y . D)Tot alc os t sc a nbedi vi de di nt oi nve nt or i a bl eandpe r i odc os t swi t hr e s pe c tt ot hel e ve lofout put . Ans we r :A Di ff:2 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

7 )Whi c hoft hef ol l owi ngi st r ueofCVPa na l ys i s ? A)Cos t sma ybes e par a t e di nt os e pa r a t ei nve nt or i a bl ea ndpe r i odc ompone nt swi t hr e s pe c tt ot hel e ve lof out put . B)Tot a lr e ve nue sandt ot alc os t sar el i ne ari nr e l a t i ont oout putuni t s . C)Uni ts e l l i ngpr i c e , uni tvar i a bl ec os t s ,anduni tfixe dc os t sa r eknowna ndr e ma i nc ons t ant . D)Pr opor t i onofdi ffe r e ntpr oduc t swi l lva r ya c c or di ngt ode ma nda nds uppl ywhe nmul t i pl epr oduc t s a r es ol d. Ans we r :B Di ff:2 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

8 )Ar e ve nuedr i ve ri sde fine da s_ _ __ _ __ _ . A)a nyf a c t ort ha taffe c t sc os t sa ndr e ve nue s B)a nyf a c t ort ha ta ffe c t sr e ve nue s C)t heonl yf a c t ort ha tc a ni nflue nc eac ha ngei ns e l l i ngpr i c e D)t heonl yf a c t ort ha tc a ni nflue nc eac ha ngei nde mand Ans we r :B Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

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9 )Thec ont r i but i onma r gi npe runi te qua l s A)fix e dc os t-c ont r i but i onmar gi nr a t i o B)s e l l i ngpr i c e-fixe dc os t spe runi t C)s e l l i ngpr i c e-var i a bl ec os t spe runi t D)s e l l i ngpr i c e-c os t sofgoodss ol d Ans we r :C

.

Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

1 0)Whi c hoft hef ol l owi ngi st r uea boutt hea s s umpt i onsunde r l yi ngba s i cCVPana l ys i s ? A)Se l l i ngpr i c eva r i e swi t hde ma nda nds uppl yoft hepr oduc t . B)Onl ys e l l i ngpr i c ea ndva r i abl ec os tpe runi tar eknowna ndc ons t a nt . C)Onl ys e l l i ngpr i c e , var i a bl ec os tpe runi t , andt ot alfix e dc os t sa r eknowna ndc ons t a nt . D)Se l l i ngpr i c e ,var i abl ec os tpe runi t ,fix e dc os tpe runi t , andt ot alfix e dc os t sa r ekno wnandc ons t ant . Ans we r :C Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

1 1)Thec ont r i but i onma r gi ni nc omes t a t e me nt_ _ __ _ __ _ . A)r e por t sgr os sma r gi n B)i sa l l owe df ore xt e r na lr e por t i ngt os ha r e hol de r s C)c a t e gor i ze sc os t sa se i t he rdi r e c tori ndi r e c t D)c a nbeus e dt opr e di c tope r a t i ngi nc omea tdi ffe r e ntl e ve l sofa c t i vi t y Ans we r :D Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

1 2)Cont r i but i onma r gi ne qual s__ _ __ _ _ _. A)r e ve nue smi nuspe r i odc os t s B)r e ve nue smi nuspr oduc tc os t s C)r e ve nue smi nusvar i a bl ec os t s D)r e ve nue smi nusfix e dc os t s Ans we r :C Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

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1 3)Spa r kl eJ e we l r ys e l l s8 00uni t sr e s ul t i ngi n$ 9, 00 0ofs a l e sr e ve nue ,$ 3, 00 0ofvar i abl ec os t s ,and$1 , 5 00 offix e dc os t s .Cont r i but i onma r gi npe runi ti s__ _ _ __ _ _. ( Roundt hefina lans we rt ot hene a r e s tc e nt . ) A)$ 1 3. 75 B)$ 1 1. 25 C)$7 . 5 0 D)$5 . 0 0 Ans we r :C Expl a na t i on:( $ 9 , 00 0−$3 , 0 00 )/80 0uni t s=$ 7. 5 0pe runi t Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

1 4)Spa r kl eJ e we l r ys e l l s5 00uni t sr e s ul t i ngi n$ 10 , 0 00ofs al e sr e ve nue ,$ 4, 00 0ofvar i abl ec os t s ,and$1 , 5 00 offix e dc os t s .Ca l c ul a t et heva r i abl ec os tpe runi t .( Roundt hefina lans we rt ot hene ar e s tc e nt . ) A)$ 1 2. 00 B)$ 6 . 00 C)$2 . 0 0 D)$8 . 0 0 Ans we r :D Expl a na t i on:$4 , 0 00/5 00=$ 8 . 00 Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

1 5)Ta l l yCor p.s e l l ss of t wa r e sdur i ngt her e c r ui t i ngs e a s ons .Dur i ngt hec ur r e ntye a r ,14 , 0 00s of t wa r e pa c ka ge swe r es ol dr e s ul t i ngi n$ 46 0 , 00 0ofs a l e sr e ve nue ,$ 11 0 , 0 00ofva r i abl ec os t s , and$5 0 , 00 0offix e d c os t s . Cont r i but i onma r gi npe rs of t war ei s_ __ _ __ _ _ . A)$ 3 2. 86 B)$ 2 5. 00 C)$2 9 . 29 D)$7 . 8 6 Ans we r :B Expl a na t i on:( $ 4 60 , 0 00−$ 11 0 , 00 0 )/1 4, 00 0=$ 25 . 0 0pe rs of t war e Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

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1 6)Ta l l yCor p.s e l l ss of t wa r edur i ngt her e c r ui t i ngs e a s ons .Dur i ngt hec ur r e ntye a r ,10 , 0 0 0s of t war e pa c ka ge swe r es ol dr e s ul t i ngi n$ 47 0 , 00 0ofs a l e sr e ve nue ,$ 13 0 , 0 00ofva r i abl ec os t s , and$4 8 , 00 0offix e d c os t s . I fs al e si nc r e a s eb y$8 0 , 0 00 ,ope r a t i ngi nc omewi l li nc r e as eby__ _ __ _ __ .( Roundi nt e r i mc a l c ul a t i onst o t wode c i malpl a c e sa ndt hefina lans we rt ot hene ar e s twhol edol l a r . ) A)$ 3 0, 58 8 B)$ 3 2, 00 0 C)$4 8 , 00 0 D)$5 7 , 87 2 Ans we r :D Expl a na t i on:Pr i c e=$ 47 0 , 00 0/10 , 0 0 0=$4 7 . 00 Sa l e si ns of t wa r epa c ka ge s=$8 0 , 00 0/$ 47 . 0 0=1, 70 2 . 13s of t wa r epa c ka ge s Ope r a t i ngi nc omei nc r e a s e=1, 70 2 . 13s of t wa r epa c ka ge s×$3 4 . 00pe r=$5 7 , 87 2 Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

1 7)Pa c i ficCompa nys e l l sonl yonepr oduc tf or$1 2pe runi t , var i a bl epr oduc t i onc os t sar e$3pe runi t ,a nd s e l l i ngandadmi ni s t r a t i vec os t sa r e$1 . 7 0pe runi t .Fi x e dc os t sf or1 1, 00 0uni t sa r e$6 , 0 00 .Theope r a t i ng i nc omei s_ __ _ _ __ _whe n1 1, 00 0uni t sar es ol d. A)$ 8 . 45pe runi t B)$ 6 . 75pe runi t C)$7 . 3 0pe runi t D)$4 . 7 0pe runi t Ans we r :B Expl a na t i on:Ope r a t i ngi nc ome=$1 2−$3−$ 1. 70-( $ 6 , 00 0/11 , 0 00 )=$ 6. 75 Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

1 8)Thec ont r i but i oni nc omes t a t e me nthi ghl i ght s__ _ __ _ __ . A)gr os sma r gi n B)t hes e gr e ga t i onofc os t si nt ope r i odc os t sa ndi nve nt or i abl ec os t s C)di ffe r e ntpr oduc tl i ne s D)var i a bl eandfix e dc os t s Ans we r :D Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

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1 9)Fi x e dc os t se qua l$1 6 , 00 0 ,uni tc ont r i but i onma r gi ne qual s$3 5 ,a ndt henumbe rofuni t ss ol de qua l 1 , 30 0 .Ope r a t i ngi nc omei s__ _ __ _ __ . A)$ 4 5, 50 0 B)$ 2 9, 50 0 C)$1 6 , 00 0 D)$6 1 , 50 0 Ans we r :B Expl a na t i on:( 1 , 3 00×$ 35 )−$1 6 , 00 0=$2 9 , 5 00 Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

2 0)Or i onCompanys e l l ss e ve r a lpr oduc t s .I nf or ma t i onofa ve r a ger e ve nueandc os t si sasf ol l ows : Se l l i ngpr i c epe runi t $ 23 Va r i abl ec os t spe runi t : Di r e c tma t e r i a l $ 4 Di r e c tmanuf a c t ur i ngl a bor $ 1. 60 Manuf a c t ur i ngove r he ad $ 0. 40 Se l l i ngc os t s $ 2. 10 Annua lfix e dc os t s $ 10 0 , 0 00 Thec ompanys e l l s12 , 0 0 0uni t sa tt hee ndoft heye a r . Thec ont r i but i onmar gi npe runi ti s__ _ __ _ _ _. A)$ 1 6. 50 B)$ 1 4. 90 C)$1 8 . 60 D)$1 9 . 00 Ans we r :B Expl a na t i on:Cont r i but i onma r gi npe runi t=( $2 3−$4−$ 1. 60−$ 0. 40−$ 2. 10 )=$1 4 . 90 Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

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2 1)Or i onCompanys e l l ss e ve r a lpr oduc t s .I nf or ma t i onofa ve r a ger e ve nueandc os t si sasf ol l ows : Se l l i ngpr i c epe runi t $ 23 Va r i abl ec os t spe runi t : Di r e c tma t e r i a l $ 4 Di r e c tmanuf a c t ur i ngl a bor $ 1. 70 Manuf a c t ur i ngove r he ad $ 0. 40 Se l l i ngc os t s $ 2 Annua lfix e dc os t s $ 10 0 , 0 00 Thec ompanys e l l s12 , 0 0 0uni t sa tt hee ndoft heye a r . I fdi r e c tl aboranddi r e c tma t e r i alc os t si nc r e a s eby$ 1e ac h,c ont r i but i onma r gi n_ __ _ __ _ _ . A)i nc r e as e sb y$2 4 , 0 00 B)i nc r e a s e sby$1 2 , 0 00 C)de c r e as e sby$ 2 4, 00 0 D)de c r e as e sby$ 12 , 0 0 0 Ans we r :C Expl a na t i on:Cont r i but i onma r gi n=( $ 23−$ 5−$2 . 7 0−$0 . 4 0−$2 )×12 , 0 00=$ 15 4 , 8 00 . Thepr e vi ousc ont r i but i onmar gi nwa s$ 17 8 , 80 0whi c hme a nsi tde c r e a s e dby$ 24 , 0 0 0 Di ff:3 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

2 2)Be l lCompa nys e l l ss e ve r a lpr oduc t s .I nf or ma t i onofa ve r a ger e ve nueandc os t si sasf ol l ows : Se l l i ngpr i c epe runi t Va r i abl ec os t spe runi t : Di r e c tma t e r i a l Di r e c tmanuf a c t ur i ngl a bor Manuf a c t ur i ngove r he ad Se l l i ngc os t s Annua lfix e dc os t s Thec ompanys e l l s10 , 0 0 0uni t s .

$ 33 . 0 0 $ 6. 00 $ 1. 50 $ 0. 30 $ 2. 25 $ 11 3 , 0 00

Thec ont r i but i onmar gi npe runi ti s__ _ __ _ _ _. A)$ 1 1. 65 B)$ 2 2. 95 C)$2 5 . 20 D)$2 5 . 50 Ans we r :B Expl a na t i on:Cont r i but i onma r gi npe runi t=$ 33 . 0 0−$6 . 0 0−$1 . 5 0−$0 . 3 0−$2 . 2 5=$2 2 . 9 5 Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

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2 3)Be l lCompa nys e l l ss e ve r a lpr oduc t s .I nf or ma t i onofa ve r a ger e ve nueandc os t si sasf ol l ows : Se l l i ngpr i c epe runi t Va r i abl ec os t spe runi t : Di r e c tma t e r i a l Di r e c tmanuf a c t ur i ngl a bor Manuf a c t ur i ngove r he ad Se l l i ngc os t s Annua lfix e dc os t s Thec ompanys e l l s13 , 0 0 0uni t s .

$ 29 $ 6 $ 1. 75 $ 0. 25 $ 2 $ 11 1 , 0 00

Wha ti st hepr opor t i onofvar i abl ec os t st ot ot a lc os t s ? A)4 3 . 15 % B)4 1 . 27 % C)77 . 2 5% D)53 . 9 4% Ans we r :D Expl a na t i on:Tot alva r i abl ec os t s=$6+$ $1 . 7 5+$0 . 2 5+$2=$ 10×1 3, 00 0=$1 3 0, 00 0 Tot a lc os t s=$1 3 0, 00 0+$ 11 1 , 00 0=$2 4 1, 00 0 . Va r i abl ec os tpr opor t i on=$1 3 0, 00 0/$2 4 1, 00 0=53 . 9 4% Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

2 4)Fa mi l yFur ni t ur es e l l sat a bl ef or$9 0 0 .I t sfix e dc os t sar e$3 0 , 0 00 ,whi l ei t svar i abl ec os t sar e$ 60 0pe r t a bl e .I tc ur r e nt l ypl anst os e l l1 7 5t a bl e st hi smont h. Wha ti st hebudge t e dr e ve nuef ort hemont ha s s umi ngt ha tFa mi l yFur ni t ur es e l l s17 5t abl e s ? A)$ 5 2, 50 0 B)$ 1 57 , 5 00 C)$1 2 7, 50 0 D)$1 0 5, 00 0 Ans we r :B Expl a na t i on:Budge t e dr e ve nue=1 75×$9 0 0=$1 5 7, 50 0 Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

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2 5)Fa mi l yFur ni t ur es e l l sat a bl ef or$9 5 0 .I t sfix e dc os t sar e$2 , 5 0 0, whi l ei t sva r i a bl ec os t sa r e$5 0 0pe r t a bl e .I tc ur r e nt l ypl anst os e l l1 8 0t a bl e st hi smont h. Wha ti st hebudge t e dope r a t i ngi nc omef ort hemont ha s s umi ngt ha tFa mi l yFur ni t ur es e l l s18 0t abl e s ? A)$ 1 68 , 5 00 B)$ 8 1, 00 0 C)$7 8 , 50 0 D)$1 7 1, 00 0 Ans we r :C Expl a na t i on:Budge t e dope r a t i ngi nc ome=$ 17 1 , 00 0−[ ( 1 8 0×$ 50 0 )+$ 2 , 50 0 ]=$ 17 1 , 0 00−$9 2 , 5 00= $ 78 , 5 0 0 Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

2 6)Sa l e Cos e l l s8 , 40 0uni t sr e s ul t i ngi n$ 12 0 , 00 0ofs a l e sr e ve nue ,$ 3 5, 0 0 0ofvar i a bl ec os t s ,and$4 5 , 00 0of fix e dc os t s .Thec ont r i but i onma r gi npe r c e nt a gei s_ __ _ __ _ _. A)6 2 . 5% B)7 0 . 83 % C)33 . 3 3% D)29 . 1 7% Ans we r :B Expl a na t i on: ( $ 12 0 , 00 0−$3 5 , 0 00 )/$1 2 0, 00 0=70 . 8 3% Di ff:2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

2 7)Whi c hoft hef ol l owi ngi st hema t he ma t i c a le xpr e s s i onofc ont r i but i onma r gi nr a t i o? A)Cont r i but i onma r gi nr a t i o=Cont r i but i onma r gi npe r c e nt a ge×Re ve nue s( i ndol l a r s ) B)Cont r i but i onma r gi nr a t i o=Cont r i but i onma r gi npe r c e nt a ge×Fi x e dc os t s( i ndol l ar s ) C)Cont r i but i onma r gi nr a t i o=Cont r i but i onmar gi npe r c e nt a ge×Va r i a bl ec os t s( i ndol l a r s ) D)Cont r i but i onma r gi nr a t i o=Cont r i but i onma r gi npe r c e nt a ge×Ope r a t i ngl e ve r a ge Ans we r :A Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

2 8)Cont r i but i onMar gi n=Tot a lr e ve nue s-Tot a lvar i a bl ec os t s Ans we r :TRUE Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

2 9)Cont r i but i onma r gi n=Tot alr e ve nue s-Tot alma nuf a c t ur i ngc os t s Ans we r :F ALSE Expl a na t i on:Gr os sMar gi n=Tot a lr e ve nue s-Tot a lma nuf a c t ur i ngc os t sOR Cont r i but i onMa r gi n=Tot alRe ve nue-Tot a lvar i a bl ec os t s Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

3 0)Cont r i but i onma r gi npe r c e nt a ge=Se l l i ngpr i c e-Var i abl ec os tpe runi t Ans we r :F ALSE Expl a na t i on:Cont r i but i onma r gi npe r c e nt a ge=Cont r i but i onma r gi n/r e ve nue sOR Cont r i but i onma r gi npe runi t=Se l l i ngpr i c e-Va r i abl ec os tpe runi t Di ff:1 Obj e c t i ve :1

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AACSB:Anal yt i c alt hi nki ng

3 1)Cont r i but i onma r gi npe runi te qua l sc ont r i but i onma r gi ndi vi de dbynumbe rofuni t ss ol d. Ans we r :TRUE Di ff:2 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

3 2)I nCVPa na l ys i s ,t hegr a phoft ot alr e ve nue sve r s ust ot alc os t si sl i ne a ri nna t ur er e l a t i ont ouni t ss ol d wi t hi nar e l e va ntr a ngea ndt i mepe r i od. Ans we r :TRUE Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

3 3)Thedi ffe r e nc ebe t we e nt ot a lr e ve nue sandt ot alva r i a bl ec os t si sc a l l e dpr ofitma r gi n. Ans we r :F ALSE Expl a na t i on:Thedi ffe r e nc ebe t we e nt ot alr e ve nue sandt ot alva r i a bl ec os t si sc al l e dc ont r i but i onma r gi n. Di ff:2 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

3 4)Thes hor t e rt het i mehor i z on,t hel owe rt hepe r c e nt a geoft ot a lc os t sc ons i de r e dfix e d. Ans we r :F ALSE Expl a na t i on:Thes hor t e rt het i mehor i z on, t hehi ghe rt hepe r c e nt a geoft ot alc os t sc ons i de r e dfix e d. Di ff:2 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

3 5)Thet hr e eme t hodsus e dt os t udyCVPana l ys i sar egr a phme t hod,c ont r i but i onme t hod, ande qua t i on me t hod. Ans we r :TRUE Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

3 6)Cont r i but i onma r gi n=Cont r i but i onma r gi npe r c e nt a ge×Re ve nue s( i ndol l a r s ) . Ans we r :TRUE Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

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3 7)Ar e ve nuedr i ve ri savar i a bl e ,s uc ha svol ume ,t ha tc a us a l l ya ffe c t sr e ve nue s . Ans we r :TRUE Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

3 8)Ope r a t i ngi nc omepl ust ot a lfix e dc os t se qua l st hec ont r i but i onma r gi n. Ans we r :TRUE Expl a na t i on:Tot alr e ve nue sl e s st ot alva r i a bl ec os t se qua lt hec ont r i but i onma r gi n. Di ff:2 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

3 9)Cont r i but i onma r gi npe r c e nt a gee qua l st heuni tc ont r i but i onma r gi ndi vi de db yt hes e l l i ngpr i c e . Ans we r :TRUE Expl a na t i on:Cont r i but i onma r gi npe runi tdi vi de dbys e l l i ngpr i c epe runi te qua l sc ont r i but i onma r gi n pe r c e nt a ge . Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

4 0)Thec l as s i fic a t i onofc os t sasvar i abl eandfix e dde pe ndsont her e l e vantr a nge ,t hel e ngt hoft het i me hor i z on,a ndt hes pe c i ficde c i s i ons i t ua t i on. Ans we r :TRUE Di ff:2 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

4 1)Thedi ffe r e nc ebe t we e nt ot a lr e ve nue sandt ot alva r i a bl ec os t si sc a l l e dc ont r i but i onma r gi n. Ans we r :TRUE Di ff:1 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

4 2)Onl yva r i abl epr oduc t i onc os t sa r eus e dwhe nc a l c ul a t i ngc ont r i but i onma r gi n. Ans we r :F ALSE Expl a na t i on:Fa l s ebe c a us eal lvar i abl ec os t s ,pr oduc t i onands e l l i ng/a dmi n, ar es ubt r a c t e df r om r e ve nue t ode t e r mi nec ont r i but i onma r gi n. Di ff:2 Obj e c t i ve :1 AACSB:Anal yt i c alt hi nki ng

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4 3)Ar t hur ' sPl umbi ngr e por t e dt hef ol l owi ng: Re ve nue s Va r i abl ema nuf a c t ur i ngc os t s Va r i abl enonma nuf a c t ur i ngc os t s Fi x e dma nuf a c t ur i ngc os t s Fi x e dnonma nuf a c t ur i ngc os t s

$4 , 5 0 0 $90 0 $81 0 $6 30 $54 5

Re qui r e d: a . Comput ec ont r i but i onma r gi n. b . Comput ec ont r i but i onma r gi npe r c e nt a ge . c . Comput egr os sma r gi n. d. Comput egr os sma r gi npe r c e nt a ge . e . Comput eope r a t i ngi nc ome . Ans we r : a . Cont r i but i onma r gi n$ 4, 50 0-$ 90 0-$ 8 10=$ 2, 79 0 b . Cont r i but i onma r gi npe r c e nt a ge=( $ 2, 7 9 0/$ 4, 50 0 )×10 0=62 % c . Gr os smar gi n$ 4, 50 0-$...