Question 1
Wasson Whatsit Company is contemplating the production and sale of a new product. Projected sales are $300,000 (or 75,000 units) and desired profit is $36,000. What is the target cost per unit?
◦ $4.00
◦ $4.80
◦ $3.52
◦ $4.48
Question 2
Match the following terms to the appropriate statement by placing the letter to the left of each statement.
| a. | Break-even graph | f. | Markup |
| b. | Break-even point | g. | Margin of safety |
| c. | Cost-plus pricing | h. | Operating leverage |
| d. | Cost-volume-profit analysis | i. | Sales mix |
| e. | Degree of operating leverage | j. | Target costing |
| ______ | 1 | .Sales revenue is exactly equal to total costs, and there is no profit or loss. |
| ______ | 2 | .The difference between current sales and break-even sales. |
| ______ | 3 | .Analysis that helps managers assess the impact of various business decisions |
| ______ | 4 | .The change in operating income relative to a change in sales. |
| ______ | 5 | .The sales of each product relative to total sales |
| ______ | 6 | .Adds an amount to the cost of the product or service to cover the company's |
| | operating costs and contribute to its profit. |
| ______ | 7 | .Computes the desired markup and the maximum cost the company can incur |
| | to deliver a product or service at the market price. |
| ______ | 8 | .Illustrates the relationship between sales and costs, allowing managers to |
view
| | a range of results in a single glance. |
| ______ | 9 | .The difference between the selling price and the cost of the product. |
| ______ | 10. | A way to compute the expected change in operating income due to a change |
| | in sales volume at a given level of sales. |
Pattern for Tactile Fremitus, Left Lateral Thorax
English and Dani basic color terms.
Commonly Misspelled Medical Terms
Frequently Used Computer Terms
Increased neurogenesis in the dentate gyrus following damage. The left panel shows (1) an ...
Left Atrium