# use the information below to answer the following question s dr mickey finn performs 4302298

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*Use the information below to answer the following question(s):*

Dr. Mickey Finn performs a certain procedure for $400.00.

The fixed costs are $8,000 and variable costs are $200.00 per procedure. 43) What is the budgeted revenue assuming the procedure is performed 200 times?

43) ______ A) $40,000 B) $320,000 C) $120,000 D) $160,000 E) $80,000

44)

What is the budgeted contribution margin assuming the procedure is performed 200 times?

44) ______ A) $20,000 B) $80,000 C) $60,000 D) $160,000 E) $40,000

45) What is the margin of safety assuming the procedure is performed 200 times?

45) ______ A) $32,000 B) $40,000 C) $16,000 D) $64,000 E) $80,000

46) What is the margin of safety in units assuming the procedure is performed 200 times?

46) ______ A) 160 units B) 40 units C) 140 units D) 200 units E) 20 units

47) What is the margin of safety assuming 100 procedures are performed?

47) ______ A) $40,000 or 100 times B) $24,000 or 60 times C) $50,000 or 110 times D) $16,000 or 40 times E) $20,000 or 50 times

48) Chris Muss is going to sell Ad-hoc compact disks for $40 a box; one box is considered to be one unit. The disks cost Chris $10 a unit. She is planning to rent a booth at the up-coming Area Computer Show. She has three options for attending the show:

1.paying a fixed fee of $3,000,

2.paying a $1,000 fee plus 10% of her revenue made at the convention, or

3.paying 25% of her revenue made at the convention.

Which of the following statements is TRUE?

48) ______ A) The breakeven point is the identical in each case. B) Fixed costs are inherent in all of the options. C) One of the options will allow Chris Muss to break even, even if she doesn't sell any disks, assuming she can return any unsold disks for a full refund. D) CVP analysis can show that the risks are identical in each case. E) Operating income per unit is the same in each case, as both selling price and costs are the same.

49) Which of the following statements is TRUE concerning operating leverage?

49) ______ A) It summarizes the risk-return tradeoff across alternate revenue possibilities B) It measures the change in operating income when costs change proportionately with the change in the number of units sold. C) The degree of operating leverage increases inversely to the number of units sold. D) The degree of operating leverage equals contribution margin divided by operating income, at any specific sales level. E) The degree of operating leverage remains constant (in the relevant range) when there is a change in the number of units sold.

50) Which of the following factors would be relevant in classifying costs as fixed or variable in a specific decision situation?

50) ______ A) if the time horizon is short or long B) the mix of revenues C) if the time horizon is shorter in another alternative D) the relevant range of the next best alternative situation E) the sales mix

*Use the information below to answer the following question(s).*

The following information is for Winnie Company:

Product A: Revenue$4.00

Variable Cost$1.00

Product B: Revenue$6.00

Variable Cost$2.00

Total fixed costs are $40,000

51) What is the breakeven point assuming the sales mix consists of two units of Product A and one unit of Product B?

51) ______ A) 2,000 units of B and 4,000 units of A B) 4,000 units of B and 8,000 units of A C) 2,025 units of B and 4,050 units of A D) 4,000 units of B and 4,000 units of A E) 4,025 units of B and 8,050 units of A

52) What is the operating income assuming actual sales are 300,000 units, and the sales mix is one unit of Product A and two units of Product B?

52) ______ A) $1,040,000 B) $1,100,100 C) $1,100,000 D) $100,000 E) $1,060,000

53) Information, Inc., sells accounting software. Each unit's cost may be separated as follows: selling price of $100 and variable costs of $30. Fixed costs are $10,000.

What is Information, Inc.'s operating income assuming 1,000 units are sold?

53) ______ A) $40,000 B) $100,000 C) $90,000 D) $60,000 E) $20,000