QUIZ 1 MGM2223

Which of the following explain the need for facility location?

• When a business is newly started.

• When the existing business unit has decline.

• When the existing business expansion is possible.

• When the lease extends and the landlord wants to renew the lease.

The followings are the factors that affecting location decisions EXCEPT:

• Expansion.

• Proximity to market.

• Proximity to suppliers.

• Availability of facilities.

Variable cost is defined as:

• the price at which a company sells each of its products or services.

• an expense that has to be paid by a company, independent of any business activity.

• an expense or cost that does not change with an increase or decrease in the number of goods or services produced or sold.

• an expense or cost that does change with an increase or decrease in the number of goods or services produced or sold.

The following statements is related to break-even point EXCEPT:

• A firm will earn zero profit.

• A firm does not make any profit or loss.

• Total costs and total revenues are equal.

• The highest break-even point is preferable.

Based on intangible factors, which location should be selected?

• Ipoh

• Seremban

• Johor Bahru

• None of the above

With fixed cost at RM16,000 per year, the variable costs at RM7.50 per unit and each unit sold for RM10.00, the break-even point is:

• 2,134 units

• 6,400 units

• 1,600 units

• 40,000 units

Raw materials are the example of

• Fixed cost

• Variable cost

• Selling price

• Contribution margin

UNK Cosmetic is currently producing a cosmetic sponge has a variable cost of RM0.40 per unit and a selling price of RM2.00 per unit. The fixed cost to produce this cosmetic sponge is RM20,000. 

What is the break-even point in units?

• 12,500 units

• 13,500 units

• 14,500 units

• 15,500 units

A company makes a product with a selling price of RM10 per unit and variable costs of RM6 per unit. The fixed costs for the period are RM20,000. What is the required output level to make a target profit of RM5,000?

• 5,650 units

• 5,260 units

• 6,520 units

• 6,250 units

Which location is the best location to be selected based on the annual cost?

• Ampang

• Cheras

• Gombak

• Shah Alam