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ASSESSMENT QUIZ 1

Total questions: 20

Worksheet time: 26mins

Name
Class
Date
1.

What is a business doing at the break even point?

a)

Making a loss

b)

Producing the startup output

c)

Making neither a profit nor a loss

d)

Making a profit.

2.

When does the break-even point fall?

a)

When fixed costs rise

b)

When depreciation increases

c)

When the selling price decreases

d)

When fixed cost fall.

3.

What assumption does this statement say "Break even is 54 units"?

a)

if we sell 55 we aren't making a profit

b)

if we sell 54 we begin to make a profit

c)

if we sell 55 we begin to make a profit

d)

if we sell 54 we are not yet at break even point

4.

My total costs are P50,000 when selling 100 items. My fixed costs are P20,000. What must be the variable cost of one item? 

a)

300

b)

500

c)

200

d)
Cannot be calculated
5.

What is the break-even point in units for a company whose total fixed costs are P275,450; selling price per unit is P16; and variable cost per unit is P14.75?

a)

220,360

b)

150,300

c)

183,633

d)

225,120

6.
Some business costs are classified as fixed costs because they
a)
must be paid within a set time
b)
don't change when sales go up or down
c)
are unpredictable and must be estimated
d)
cost all businesses the same amount
7.
A business that does not reach break-even will
a)
go bankrupt
b)
have profit and loss
c)
lose money
d)
need to relocate
8.
Businesses calculate break-even in units so they know
a)
how much profit they will earn after they break even
b)
which products they should purchase for resale
c)
which costs are variable and which are fixed
d)
how many products they must sell to break even
9.
Define variable costs.
a)
costs only related to making the product
b)
overhead costs
c)
combined costs
d)
costs that include marketing
10.

The point where the money going out is equal to money coming in, is known as the ______________________.

a)

break-even analysis

b)

break-down point

c)

break-even point

11.

A (a)   is a linear relationship representing a restriction on decision making.

12.

What is the break-even output if fixed costs are 30,000, selling price per unit is 20 and variable costs per unit are 8?

a)

2,500

b)

2,500

c)

1,500

d)

3,750

13.

What is the break-even output if the amount charged to customers is P60, the cost of making each item is P25 and fixed costs are P700,000?

a)

20,000

b)

2,000

c)

20,000

d)

2,000

14.

How would you determine the break-even point on a graph?

a)

Where the lines for total revenue and total costs cross

b)

Where the lines for total revenue and fixed costs cross

c)

Where the lines for total costs and fixed costs cross

d)

Where the lines for fixed costs and variable costs cres..

15.

If at least one constraint in a linear programming model is violated, the solution is said to be (a)   .

16.

What is the profit (or loss) if 10 units were sold at a selling price of P85, the variable costs per unit was P25 and fixed costs were P300?

a)

P3000

b)

(P300)

c)

P300

d)

P600

17.

(a)   is the difference between the left- and right-hand sides of a greater than or equal to constraint.

18.

Susanna Nanna is the production manager for a furniture manufacturing company.  The company produces tables (X) and chairs (Y).  Each table generates a profit of $80 and requires 3 hours of assembly time and 4 hours of finishing time.  Each chair generates $50 of profit and requires 3 hours of assembly time and 2 hours of finishing time.  There are 360 hours of assembly time and 240 hours of finishing time available each month.  The following linear programming problem represents this situation.

Maximize: 80X + 50Y

What would the maximum possible profit be? 

(a)  

19.

Consider the following constraints from a linear programming problem:

  2X+Y≤2002X+Y\le200  

X+2Y≤200X+2Y\le200

X,Y≥0X,Y\ge0  

If these are the only constraints, which of the following points (X,Y) cannot be the optimal solution?

a)

(0, 0)

b)

(0, 100)

c)

(65, 65)

d)

(100, 0)

e)

(66.67, 66.67)

20.

Consider the following linear programming problem:

Maximize                     5X + 6Y

Subject to: 4X+2Y≤4204X+2Y\le420  

1X+2Y≤1201X+2Y\le120  

all variables≥0all\ variables\ge0  

Which of the following points (X,Y) is feasible?

a)

(50,40)

b)

(30,50)

c)

(60,30)

d)

(90,20)