BA 2 Practice Test 3

BA 2 Practice Test 3

Professional Development

22 Qs

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BA 2 Practice Test 3

BA 2 Practice Test 3

Assessment

Quiz

Professional Development

Professional Development

Practice Problem

Hard

Created by

Ali Raheem

Used 1+ times

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22 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

2 mins • 2 pts

A Co makes a single product which it sells for $10 per unit. Fixed costs are $48,000 per month and the product has a contribution to sales ratio of 40%. In a month when actual sales were $140,000, A Co's margin of safety, in units, was:

2,000

12,000

14,000

20,000

2.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Data concerning K CO's single product is as follows.

$ per unit

Selling price 6.00

Variable production cost 1.20

Variable selling cost 0.40

Fixed production cost 4.00

Fixed selling cost 0.80

Budgeted production and sales for the year are 10,000 units. It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production costs will rise by 25%. What will the new breakeven point be, to the nearest whole unit?

8,788 units

11,600 units

11,886 units

12,397 units

3.

FILL IN THE BLANK QUESTION

2 mins • 1 pt

F Scuttle Co has fixed costs of $50,000 per annum. The company sells a single product for $25 per unit. The contribution to sales ratio is 40%. What is the breakeven point in revenue? (do not use symbols or punctuation)

4.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

A single product company has a contribution to sales ratio of 40%. Fixed costs amount to $90,000 per annum. The selling price per unit is $25. The number of units required to break even is:

9,000

36,000

150,000

225,000

5.

FILL IN THE BLANK QUESTION

2 mins • 1 pt

Lime Co makes a single product and incurs fixed production costs of $90,000 per month and fixed selling costs of $240,000 per year. Budgeted sales revenue for June is $200,000 and budgeted contribution for June is $80,000. What is the breakeven sales revenue for June? (Do not use symbols or punctuation)

6.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Media Image

In a period when direct material is restricted in supply, Which product should be given priority?

J

K

L

7.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Media Image

The product is perishable and no inventories are held. Demand for next period will be 2,000 units but only 16,000 litres of material and 15,000 hours of labour will be available. The limiting factor(s) next period will be:

Material only

Labour only

Material and labour

Neither material nor labour

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