Marginal Costing Basics - Numerical Applications

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Q. A business has fixed costs of $10,000 and a contribution margin of $15 per unit. How many units must be sold to break even?
  • A. 500
  • B. 600
  • C. 700
  • D. 800
Q. A company has fixed costs of $12,000 and a contribution margin of $20 per unit. If they sell 1,000 units, what is their profit?
  • A. $8,000
  • B. $10,000
  • C. $12,000
  • D. $14,000
Q. A company has fixed costs of $20,000 and a contribution margin of $5 per unit. How many units must be sold to break even?
  • A. 2,000
  • B. 4,000
  • C. 1,000
  • D. 5,000
Q. A company has fixed costs of $30,000 and a contribution margin of $10 per unit. How many units must be sold to achieve a target profit of $10,000?
  • A. 4,000
  • B. 3,000
  • C. 2,000
  • D. 5,000
Q. A company incurs a total cost of $15,000 for producing 1,200 units. If the fixed costs are $5,000, what is the variable cost per unit?
  • A. $8.33
  • B. $10.00
  • C. $12.50
  • D. $7.50
Q. A company produces 1,000 units of a product at a total cost of $10,000. If the fixed costs are $4,000, what is the marginal cost per unit?
  • A. $6.00
  • B. $4.00
  • C. $10.00
  • D. $8.00
Q. A company produces 1,000 units of a product at a total variable cost of $5,000. What is the marginal cost per unit?
  • A. $2.00
  • B. $5.00
  • C. $3.00
  • D. $4.00
Q. A company produces 200 units with a total fixed cost of $10,000 and a variable cost of $15 per unit. What is the total cost?
  • A. $10,000
  • B. $13,000
  • C. $15,000
  • D. $20,000
Q. A product has a marginal cost of $8 and a selling price of $12. What is the contribution margin ratio?
  • A. 33.33%
  • B. 25%
  • C. 40%
  • D. 50%
Q. A product has a selling price of $20, variable cost of $12, and fixed costs of $3,000. What is the contribution margin per unit?
  • A. $8
  • B. $7
  • C. $6
  • D. $5
Q. A product has a selling price of $25 and variable costs of $15. If fixed costs are $10,000, what is the margin of safety if 1,200 units are sold?
  • A. $6,000
  • B. $4,000
  • C. $8,000
  • D. $2,000
Q. If a company has a total sales revenue of $50,000 and total variable costs of $30,000, what is the total contribution?
  • A. $20,000
  • B. $30,000
  • C. $50,000
  • D. $10,000
Q. If a company has variable costs of $5 per unit and fixed costs of $2,000, what is the total cost for producing 500 units?
  • A. $2,500
  • B. $4,000
  • C. $5,000
  • D. $3,000
Q. If a company sells 500 units at a selling price of $15 each and incurs variable costs of $6 per unit, what is the total contribution?
  • A. $4,500
  • B. $3,000
  • C. $7,500
  • D. $2,250
Q. If a company sells a product for $50 and has variable costs of $30, what is the break-even point in units if fixed costs are $20,000?
  • A. 1,000
  • B. 800
  • C. 600
  • D. 400
Q. If a company wants to achieve a profit of $10,000 and has fixed costs of $5,000 with a contribution margin of $10 per unit, how many units must be sold?
  • A. 1,000
  • B. 500
  • C. 1,500
  • D. 2,000
Q. If the marginal cost of producing an additional unit is $10 and the selling price is $15, what is the profit from selling that unit?
  • A. $5
  • B. $10
  • C. $15
  • D. $0
Q. If the selling price per unit is $10 and the marginal cost per unit is $6, what is the contribution margin per unit?
  • A. $4
  • B. $6
  • C. $10
  • D. $2
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