BA 2 Practice Test 3

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

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

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)

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

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)

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

• J

• K

• L

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

TTT Co makes three products. All three use the same machine, which is available for 125,000 hours per period. The deficiency in machine hours for the next period in hours is (Do not use symbols or punctuation)

FEEB manufactures two products, the FE and the EB, using the same material for each. Annual demand for the FE is 10,000 units, while demand for the EB is 7,000 units. The variable production cost per unit of the FE is $15, while that of the EB is $21. The FE requires 1.5 kg of raw material per unit, and the EB requires 2 kg of raw material per unit. Supply of raw material will be limited to 25,000 kg during the year. A subcontractor has quoted prices of $24 per unit for the FE and $27 per unit for the EB to supply the product. How many units of FE should FEEB manufacture in order to maximise profits? (Do not use symbols or punctuation)

FEEB manufactures two products, the FE and the EB, using the same material for each. Annual demand for the FE is 10,000 units, while demand for the EB is 7,000 units. The variable production cost per unit of the FE is $15, while that of the EB is $21. The FE requires 1.5 kg of raw material per unit, and the EB requires 2 kg of raw material per unit. Supply of raw material will be limited to 25,000 kg during the year. A subcontractor has quoted prices of $24 per unit for the FE and $27 per unit for the EB to supply the product. How many units of EB should FEEB manufacture in order to maximise profits? (Do not use symbols or punctuation)