TestBank CHAP7 Corporate Finance by Ross 10th

Test bank chapter 7
Câu hỏi số 1
An analysis of what happens to the estimate of the net present value when you examine a
number of different likely situations is called _____ analysis.
●

A. -forecasting

●

B. -scenario

●

C. -sensitivity

●

D. -simulation

●

E. -break-even

Câu hỏi số 2
An analysis of what happens to the estimate of net present value when only one variable is
changed is called _____ analysis.
●

A. -forecasting

●

B. -scenario

●

C. -sensitivity

●

D. -simulation

●

E. -break-even

Câu hỏi số 3
An analysis which combines scenario analysis with sensitivity analysis is called _____
analysis.
●

A. -forecasting

●

B. -scenario

●

C. -sensitivity

●

D. -simulation

●

E. -break-even


Câu hỏi số 4
An analysis of the relationship between the sales volume and various measures of
profitability is called _____ analysis.
●

A. -forecasting

●

B. -scenario

●

C. -sensitivity

●

D. -simulation

●

E. -break-even

Câu hỏi số 5
Variable costs:
●

A. -change in direct relationship to the quantity of output produced.

●

B. -are constant in the short-run regardless of the quantity of output produced.

●

C. -are equal to the change in a variable when one more unit of output is produced.

●

D. -are subtracted from fixed costs to compute the contribution margin.

●

E. -form the basis that is used to determine the degree of operating leverage employed by
a firm.

Câu hỏi số 6
Fixed costs:
●

A. -change as the quantity of output produced changes.

●

B. -are constant over the short-run regardless of the quantity of output produced.

●

C. -reflect the change in a variable when one more unit of output is produced.

●

D. -are subtracted from sales to compute the contribution margin.

●

E. -can be ignored in scenario analysis since they are constant over the life of a project.


Câu hỏi số 7
The sales level that results in a project's net income exactly equaling zero is called the
_____ break-even.
●

A. -operational

●

B. -leveraged

●

C. -accounting

●

D. -cash

●

E. -present value

Câu hỏi số 8
The sales level that results in a project's net present value exactly equaling zero is called the
_____ break-even.
●

A. -operational

●

B. -leveraged

●

C. -accounting

●

D. -cash

●

E. -present value

Câu hỏi số 9
Conducting scenario analysis helps managers see the:
●

A. -impact of an individual variable on the outcome of a project.

●

B. -potential range of outcomes from a proposed project.

●

C. -changes in long-term debt over the course of a proposed project.

●

D. -possible range of market prices for their firm's stock over the life of a project.

●

E. -allocation distribution of funds for capital projects under conditions of hard rationing.

Câu hỏi số 10

Sensitivity analysis helps you determine the:
●

A. -range of possible outcomes given possible ranges for every variable.

●

B. -degree to which the net present value reacts to changes in a single variable.

●

C. -net present value given the best and the worst possible situations.

●

D. -degree to which a project is reliant upon the fixed costs.

●

E. -level of variable costs in relation to the fixed costs of a project.

Câu hỏi số 11
As the degree of sensitivity of a project to a single variable rises, the:
●

A. -lower the forecasting risk of the project.

●

B. -smaller the range of possible outcomes given a pre-defined range of values for the

input.

●

C. -more attention management should place on accurately forecasting the future
value of that variable.

●

D. -lower the maximum potential value of the project.

●

E. -lower the maximum potential loss of the project.

Câu hỏi số 12
Sensitivity analysis is conducted by:
●

A. -holding all variables at their base level and changing the required rate of return
assigned to a project.

●

B. -changing the value of two variables to determine their interdependency.

●

C. -changing the value of a single variable and computing the resulting change in
the current value of a project.

●

D. -assigning either the best or the worst possible value to every variable and comparing
the results to those achieved by the base case.

●

E. -managers after a project has been implemented to determine how each variable relates
to thelevel of output realized.

Câu hỏi số 13


To ascertain whether the accuracy of the variable cost estimate for a project will have much
effect on the final outcome of the project, you should probably conduct _____ analysis.
●

A. -leverage

●

B. -scenario

●

C. -break-even

●

D. -sensitivity

●

E. -cash flow

Câu hỏi số 14
Simulation analysis is based on assigning a _____ and analyzing the results.
●

A. -narrow range of values to a single variable

●

B. -narrow range of values to multiple variables simultaneously

●

C. -wide range of values to a single variable

●

D. -wide range of values to multiple variables simultaneously

●

E. -single value to each of the variables

Câu hỏi số 15
The type of analysis that is most dependent upon the use of a computer is _____ analysis.

●

A. -scenario

●

B. -break-even

●

C. -sensitivity

●

D. -degree of operating leverage

●

E. –simulation

Câu hỏi số 16
Which one of the following is most likely a variable cost?
●

A. -Office rent

●

B. -Property taxes

●

C. -Property insurance


●

D. -Direct labor costs

●

E. -Management salaries

Câu hỏi số 17
Which of the following statements concerning variable costs is (are) correct?
I. Variable costs minus fixed costs equal marginal costs.
II. Variable costs are equal to zero when production is equal to zero.
III. An increase in variable costs increases the operating cash flow.
●

A. -II only

●

B. -III only

●

C. -I and III only

●

D. -II and III only

●

E. -I and II only

Câu hỏi số 18
All else constant, as the variable cost per unit increases, the:
●

A. -contribution margin decreases.

●

B. -sensitivity to fixed costs decreases.

●

C. -degree of operating leverage decreases.

●

D. -operating cash flow increases.

●

E. -net profit increases.

Câu hỏi số 19
Fixed costs:
I. are variable over long periods of time.
II. must be paid even if production is halted.
III. are generally affected by the amount of fixed assets owned by a firm.
IV. per unit remain constant over a given range of production output.


●

A. -I and III only

●

B. -II and IV only

●

C. -I, II, and III only

●

D. -I, II, and IV only

●

E. -I, II, III, and IV

Câu hỏi số 20
All else equal, the contribution margin must increase as:

●

A. -both the sales price and variable cost per unit increase.

●

B. -the fixed cost per unit declines.

●

C. -the variable cost per unit declines.

●

D. -sales price per unit declines.

●

E. -the sales price minus the fixed cost per unit increases.

Câu hỏi số 21
Which of the following statements are correct concerning the accounting break-even point?
I. The net income is equal to zero at the accounting break-even point.
II. The net present value is equal to zero at the accounting break-even point.
III. The quantity sold at the accounting break-even point is equal to the total fixed costs
plus depreciation divided by the contribution margin.
IV. The quantity sold at the accounting break-even point is equal to the total fixed costs
divided by the contribution margin.
●

A. -I and III only

●

B. -I and IV only

●

C. -II and III only

●

D. -II and IV only

●

E. -I, II, and IV only

Câu hỏi số 22


All else constant, the accounting break-even level of sales will decrease when the:
●

A. -fixed costs increase.

●

B. -depreciation expense decreases.

●

C. -contribution margin decreases.

●

D. -variable costs per unit increase.

●

E. -selling price per unit decreases.

Câu hỏi số 23
The point where a project produces a rate of return equal to the required return is known
as the:
●

A. -point of zero operating leverage.

●

B. -internal break-even point.

●

C. -accounting break-even point.

●

D. -present value break-even point.

●

E. -income break-even point.

Câu hỏi số 24
Which of the following statements are correct concerning the present value break-even
point of a project?
I. The present value of the cash inflows equals the amount of the initial investment.
II. The payback period of the project is equal to the life of the project.
III. The operating cash flow is at a level that produces a net present value of zero.
IV. The project never pays back on a discounted basis.
Trả lời
●

A. -I and II only

●

B. -I and III only

●

C. -II and IV only

●

D. -III and IV only

●

E. -I, III, and IV only


Câu hỏi số 25
The investment timing decision relates to:
●

A. -how long the cash flows last once a project is implemented.

●

B. -the decision as to when a project should be started.

●

C. -how frequently the cash flows of a project occur.

●

D. -how frequently the interest on the debt incurred to finance a project is compounded.

●

E. -the decision to either finance a project over time or pay out the initial cost in cash.

Câu hỏi số 26
The timing option that gives the option to wait:
I. may be of minimal value if the project relates to a rapidly changing technology.
II. is partially dependent upon the discount rate applied to the project being evaluated.

III. is defined as the situation where operations are shut down for a period of time.
IV. has a value equal to the net present value of the project if it is started today versus the
net present value if it is started at some later date.
●

A. -I and III only

●

B. -II and IV only

●

C. -I and II only

●

D. -II, III, and IV only

●

E. -I, II, and IV only

Câu hỏi số 27
Last month you introduced a new product to the market. Consumer demand has been
overwhelming and it appears that strong demand will exist over the long-term. Given this
situation, management should consider the option to:
●

A. -suspend.

●

B. -expand.

●

C. -abandon.


●

D. -contract.

●

E. -withdraw.

Câu hỏi số 28
Including the option to expand in your project analysis will tend to:
●

A. -extend the duration of a project but not affect the project's net present value.

●

B. -increase the cash flows of a project but decrease the project's net present value.

●

C. -increase the net present value of a project.

●

D. -decrease the net present value of a project.

●

E. -have no effect on either a project's cash flows or its net present value.

Câu hỏi số 29
Theoretically, the NPV is the most appropriate method to determine the acceptability of a
project. A false sense of security can overcome the decision-maker when the procedure is
applied properly but the positive NPV results are accepted blindly. Sensitivity and scenario
analysis aid in the process by:
●

A. -changing the underlying assumptions on which the decision is based.

●

B. -highlights the areas where more and better data are needed.

●

C. -providing a picture of how an event can affect the calculations.

●

D. -All of these.

●

E. -None of these.

Câu hỏi số 30
In a decision tree, the NPV to make the yes/no decision is dependent on:
●

A. -only the cash flows from successful path.

●

B. -on the path where the probabilities add up to one.

●

C. -all cash flows and probabilities.

●

D. -only the cash flows and probabilities of the successful path.

●

E. -None of these.


Câu hỏi số 31
In a decision tree, caution should be used in the analysis because:

●

A. -early stage decisions are probably riskier and should not likely use the same discount
rate.

●

B. -if a negative NPV is actually occurring, management should opt out of the project and
minimize the firm's loss.

●

C. -decision trees are only used for financial planning.

●

D. -Both early stage decisions are probably riskier and should not likely use the same
discount rate; and decision trees are only used for financial planning.

●

E. -Both early stage decisions are probably riskier and should not likely use the
same discount rate;and if a negative NPV is actually occurring, management should
opt out of the project and minimize the firm's loss.

Câu hỏi số 32
Sensitivity analysis evaluates the NPV with respect to:
●

A. -changes in the underlying assumptions.

●

B. -one variable changing while holding the others constant.

●

C. -different economic conditions.

●

D. -All of these.

●

E. -None of these.

Câu hỏi số 33
Sensitivity analysis provides information on:
●

A. -whether the NPV should be trusted and may provide a false sense of security if all
NPVs are positive.

●

B. -the need for additional information as it tests each variable in isolation.

●

C. -the degree of difficulty in changing multiple variables together.

●

D. -Both whether the NPV should be trusted and may provide a false sense of
security if all NPVs are positive; and the need for additional information as it tests
each variable in isolation.


●

E. -Both whether the NPV should be trusted and may provide a false sense of security if
all NPVs are positive; and the degree of difficulty in changing multiple variables
together.

Câu hỏi số 34
Fixed production costs are:
●

A. -directly related to labor costs.

●

B. -measured as cost per unit of time.

●

C. -measured as cost per unit of output.

●

D. -dependent on the amount of goods or services produced.

●

E. -None of these.

Câu hỏi số 35
Variable costs:
●

A. -change as the quantity of output changes.

●

B. -are zero when production is zero.

●

C. -are exemplified by direct labor and raw materials.

●

D. -All of these.

●

E. -None of these.

Câu hỏi số 36

An investigation of the degree to which NPV depends on assumptions made about any
singular critical variable is called a(n):
●

A. -operating analysis.

●

B. -sensitivity analysis.

●

C. -marginal benefit analysis.

●

D. -decision tree analysis.

●

E. -None of these.


Câu hỏi số 37
Scenario analysis is different than sensitivity analysis:
●

A. -because no economic forecasts are changed.

●

B. -because several variables are changed together.

●

C. -because scenario analysis deals with actual data versus sensitivity analysis which
deals with a forecast.

●

D. -because it is short and simple.

●

E. -because it is a "by the seat of the pants" technique.

Câu hỏi số 38
In the present-value break-even the EAC is used to:
●

A. -determine the opportunity cost of investment.

●

B. -allocate depreciation over the life of the project.

●

C. -allocate the initial investment at its opportunity cost over the life of the project.

●

D. -determine the contribution margin to fixed costs.

●

E. -None of these.

Câu hỏi số 39
The present value break-even point is superior to the accounting break-even point because:
●

A. -present value break-even is more complicated to calculate.

●

B. -present value break-even covers the economic opportunity costs of the
investment.

●

C. -present value break-even is the same as sensitivity analysis.

●

D. -present value break-even covers the fixed costs of production, which the accounting
break-even does not.

●

E. -present value break-even covers the variable costs of production, which the
accounting break-even does not.

Câu hỏi số 40
The potential decision to abandon a project has option value because:


●

A. -abandonment can occur at any future point in time.

●

B. -a project may be worth more dead than alive.

●

C. -management is not locked into a negative outcome.

●

D. -All of these.

●

E. -None of these.

Câu hỏi số 41
Which of the following are types of break-even analysis?
●

A. -Present value break-even

●

B. -Accounting profit break-even

●

C. -Market value break-even

●

D. -Both present value break-even; and accounting profit break-even

●

E. -Both present value break-even; and market value break-even

Câu hỏi số 42
The approach that further attempts to model real world uncertainty by analyzing projects
the way one might analyze gambling strategies is called:
●

A. -gambler's approach.

●

B. -blackjack approach.

●

C. -Monte Carlo simulation.

●

D. -scenario analysis.

●

E. -sensitivity analysis.

Câu hỏi số 43
Monte Carlo simulation is:
●

A. -the method of analysis most widely used by executives.

●

B. -a very simple formula.

●

C. -more complex than sensitivity or scenario analysis.

●

D. -the oldest capital budgeting technique.

●

E. -None of these.

Câu hỏi số 44
Which of the following are hidden options in capital budgeting?
●

A. -Option to expand.

●

B. -Timing option.

●

C. -Option to abandon.

●

D. -All of these.

●

E. -None of these.

Câu hỏi số 45
-The Adept Co. is analyzing a proposed project. The company expects to sell 2,500 units,
give or take 10%. The expected variable cost per unit is $8 and the expected fixed costs are

$12,500. Cost estimates are considered accurate within a plus or minus 5% range. The
depreciation expense is $4,000. The sale price is estimated at $16 a unit, give or take 2%.
The company bases its sensitivity analysis on the expected case scenarioWhat is the sales
revenue under the optimistic case scenario?
●

A. -$40,000

●

B. -$43,120

●

C. -$44,000

●

D. -$44,880

●

E. -$48,400
Sales revenue for the best case = 2,500 × 1.1 × $16 × 1.02 = $44,880

Câu hỏi số 46
-The Adept Co. is analyzing a proposed project. The company expects to sell 2,500 units,
give or take 10%. The expected variable cost per unit is $8 and the expected fixed costs are
$12,500. Cost estimates are considered accurate within a plus or minus 5% range. The
depreciation expense is $4,000.The sale price is estimated at $16 a unit, give or take 2%.

The company bases its sensitivity analysis on the expected case scenario.
What is the contribution margin under the expected case scenario?
●

A. -$2.67

●

B. -$3.00


●

C. -$7.92

●

D. -$8.00

●

E. -$8.72

Contribution margin for the base case = $16 - $8 = $8
Câu hỏi số 47
-The Adept Co. is analyzing a proposed project. The company expects to sell 2,500 units,
give or take 10%. The expected variable cost per unit is $8 and the expected fixed costs are
$12,500. Cost estimates are considered accurate within a plus or minus 5% range. The
depreciation expense is $4,000. The sale price is estimated at $16 a unit, give or take 2%.
The company bases its sensitivity analysis on the expected case scenarioWhat is the amount

of the fixed cost per unit under the pessimistic case scenario?
●

A. -$4.55

●

B. -$5.00

●

C. -$5.83

●

D. -$6.02

●

E. -$6.55
Fixed cost per unit for the worst case = ($12,500 × 1.05) ÷ (2,500 × .9) = $5.83

Câu hỏi số 48
-The Adept Co. is analyzing a proposed project. The company expects to sell 2,500 units,
give or take 10%. The expected variable cost per unit is $8 and the expected fixed costs are
$12,500. Cost estimates are considered accurate within a plus or minus 5% range. The
depreciation expense is $4,000. The sale price is estimated at $16 a unit, give or take 2%.
The company bases its sensitivity analysis on the expected case scenario.The company is
conducting a sensitivity analysis on the sales price using a sales price estimate of $17. Using
this value, the earnings before interest and taxes will be:

●

A. -$4,000

●

B. -$6,000

●

C. -$8,500

●

D. -$10,000

●

E. -$18,500
EBIT = [($17 - $8) × 2,500] - $12,500 - $4,000 = $6,000

Câu hỏi số 49


-The Adept Co. is analyzing a proposed project. The company expects to sell 2,500 units,
give or take 10%. The expected variable cost per unit is $8 and the expected fixed costs are
$12,500. Cost estimates are considered accurate within a plus or minus 5% range. The
depreciation expense is $4,000. The sale price is estimated at $16 a unit, give or take 2%.
The company bases its sensitivity analysis on the expected case scenario.The company
conducts a sensitivity analysis using a variable cost of $9. The total variable cost estimate

will be:
●

A. -$21,375

●

B. -$22,500

●

C. -$23,625

●

D. -$24,125

●

E. -$24,750
Total variable cost = $9 × 2,500 = $22,500

Câu hỏi số 50
-The Can-Do Co. is analyzing a proposed project. The company expects to sell 12,000 units,
give or take 4%. The expected variable cost per unit is $7 and the expected fixed cost is
$36,000. The fixed and variable cost estimates are considered accurate within a plus or
minus 6% range. The depreciation expense is $30,000. The tax rate is 34%. The sale price is
estimated at $14 a unit, give or take 5%. The company bases its sensitivity analysis on the
expected case scenario.What is the earnings before interest and taxes under the expected
case scenario?

●

A. -$18,000

●

B. -$24,000

●

C. -$36,000

●

D. -$48,000

●

E. -$54,000
:EBIT for base case = [12,000 × ($14 - $7)] - $36,000 - $30,000 = $18,000

Câu hỏi số 51
-The Can-Do Co. is analyzing a proposed project. The company expects to sell 12,000 units,
give or take 4%. The expected variable cost per unit is $7 and the expected fixed cost is
$36,000. The fixed and variable cost estimates are considered accurate within a plus or
minus 6% range. The depreciation expense is $30,000. The tax rate is 34%. The sale price is
estimated at $14 a unit, give or take 5%. The company bases its sensitivity analysis on the
expected case scenario.What is the earnings before interest and taxes under the optimistic
case scenario?

●

A. -$22,694.40

●

B. -$24,854.40

●

C. -$37,497.60

●

D. -$52,694.40

●

E. -$67,947.60

EBIT for best case = (12,000 × 1.04) × [($14 × 1.05) - ($7 × .94)] - ($36,000 × .94) - $30,000
= $37,497.60
Câu hỏi số 52
-The Can-Do Co. is analyzing a proposed project. The company expects to sell 12,000 units,
give or take 4%. The expected variable cost per unit is $7 and the expected fixed cost is
$36,000. The fixed and variable cost estimates are considered accurate within a plus or
minus 6% range. The depreciation expense is $30,000. The tax rate is 34%. The sale price is
estimated at $14 a unit, give or take 5%. The company bases its sensitivity analysis on the
expected case scenario.What is the earnings before interest and taxes under the pessimistic

case scenario?
●

A. --$566.02

●

B. --$422.40

●

C. --$278.78

●

D. -$3,554.50

●

E. -$5,385.60
Net income for worst case = {[12,000 × .96] × [($14 × .95) - ($7 × 1.06)] - ($36,000 ×
1.06) - $30,000} × (1 - .34} = -$422.40

Câu hỏi số 53
-The Can-Do Co. is analyzing a proposed project. The company expects to sell 12,000 units,
give or take 4%. The expected variable cost per unit is $7 and the expected fixed cost is
$36,000. The fixed and variable cost estimates are considered accurate within a plus or
minus 6% range. The depreciation expense is $30,000. The tax rate is 34%. The sale price is
estimated at $14 a unit, give or take 5%. The company bases its sensitivity analysis on the
expected case scenario.What is the operating cash flow for a sensitivity analysis using total

fixed costs of$32,000?
●

A. -$14,520

●

B. -$16,520

●

C. -$22,000


●

D. -$44,520

●

E. -$52,000
EBIT = [(12,000 × ($14 - $7)] - $32,000 - $30,000 = $22,000Tax = $22,000 × .34 =
$7,480OCF = $22,000 + $30,000 - $7,480 = $44,520

Câu hỏi số 54
-The Can-Do Co. is analyzing a proposed project. The company expects to sell 12,000 units,
give or take 4%. The expected variable cost per unit is $7 and the expected fixed cost is
$36,000. The fixed and variable cost estimates are considered accurate within a plus or
minus 6% range. The depreciation expense is $30,000. The tax rate is 34%. The sale price is
estimated at $14 a unit, give or take 5%. The company bases its sensitivity analysis on the

expected case scenario.What is the contribution margin for a sensitivity analysis using a
variable cost per unit of $8?
●

A. -$3

●

B. -$4

●

C. -$5

●

D. -$6

●

E. -$7
Contribution margin = $14 - $8 = $6

Câu hỏi số 55
-The Meldrum Co. is analyzing a proposed project. The company expects to sell 3,000 units,
give or take 15%. The expected variable cost per unit is $8 and the expected fixed costs are
$12,500. Cost estimates are considered accurate within a plus or minus 5% range. The
depreciation expense is $4,000. The sale price is estimated at $18 a unit, give or take 2%.
The company bases its sensitivity analysis on the expected case scenario.What is the sales
revenue under the optimistic case scenario?

●

A. -$54,400

●

B. -$55,080

●

C. -$62,100

●

D. -$63,342

●

E. -$65,030
Sales revenue for the best case = 3,000 × 1.15 × $18 × 1.02 = $63,342

Câu hỏi số 56


-The Meldrum Co. is analyzing a proposed project. The company expects to sell 3,000 units,
give or take 15%. The expected variable cost per unit is $8 and the expected fixed costs are
$12,500. Cost estimates are considered accurate within a plus or minus 5% range. The
depreciation expense is $4,000. The sale price is estimated at $18 a unit, give or take 2%.
The company bases its sensitivity analysis on the expected case scenario.What is the
contribution margin under the expected case scenario?

●

A. -$8

●

B. -$8.32

●

C. -$10

●

D. -$16

●

E. -$18
Contribution margin for the base case = $18 - $8 = $10

Câu hỏi số 57
-The Meldrum Co. is analyzing a proposed project. The company expects to sell 3,000 units,
give or take 15%. The expected variable cost per unit is $8 and the expected fixed costs are
$12,500. Cost estimates are considered accurate within a plus or minus 5% range. The
depreciation expense is $4,000. The sale price is estimated at $18 a unit, give or take 2%.
The company bases its sensitivity analysis on the expected case scenario.What is the
amount of the fixed cost per unit under the pessimistic case scenario?
●

A. -$4.17

●

B. -$4.66

●

C. -$5.15

●

D. -$5.35

●

E. -$6.02
Fixed cost per unit for the worst case = ($12,500 × 1.05) ÷ (3,000 × .85) = $5.15

Câu hỏi số 58
-The Meldrum Co. is analyzing a proposed project. The company expects to sell 3,000 units,
give or take 15%. The expected variable cost per unit is $8 and the expected fixed costs are
$12,500. Cost estimates are considered accurate within a plus or minus 5% range. The
depreciation expense is $4,000. The sale price is estimated at $18 a unit, give or take 2%.
The company bases its sensitivity analysis on the expected case scenario.The company is
conducting a sensitivity analysis on the sales price using a sales price estimate of $17. Using
this value, the earnings before interest and taxes will be:
●

A. -$7,500

●

B. -$8,000

●

C. -$10,500

●

D. -$14,000

●

E. -$23,500
EBIT = [($17 - $8) × 3,000] - $12,500 - $4,000 = $10,500

Câu hỏi số 59
-A firm is reviewing a project with a labor cost of $8.90 per unit, raw materials cost of
$21.63 a unit, and fixed costs of $8,000 a month. Sales are projected at 10,000 units over the
three-month life of the project. What are the total variable costs of the project?
●

A. -$216,300

●

B. -$297,300

●

C. -$305,300

●

D. -$313,300

●

E. -$329,300
Total variable costs = ($8.90 + $21.63) × 10,000 = $305,300

Câu hỏi số 60
-A project has earnings before interest and taxes of $5,750, fixed costs of $50,000, a selling
price of $13 a unit, and a sales quantity of 11,500 units. Depreciation is $7,500.What is the
variable cost per unit?
●

A. -$6.75

●

B. -$7.00

●

C. -$7.25

●

D. -$7.50

●

E. -$7.75
[11,500 × ($13.00 - v)] - $50,000 - $7,500 = $5,750; v = $7.50

Câu hỏi số 61
-At a production level of 5,600 units a project has total costs of $89,000. The variable cost per
unit is $11.20. What is the amount of the total fixed costs?
Trả lời


●

A. -$24,126

●

B. -$26,280

●

C. -$27,090

●

D. -$27,820

●

E. -$28,626

●
●
●

Câu hỏi số 62
-At a production level of 6,000 units a project has total costs of $120,000. The variable cost per
unit is $14.50. What is the amount of the total fixed costs?
Trả lời
●

A. -$25,165

●

B. -$28,200

●

C. -$30,570

●

D. -$32,000

●

E. -$33,000

●
●


●

Câu hỏi số 63
-Wilson's Meats has computed its fixed costs to be $.60 for every pound of meat it sells given an
average daily sales level of 500 pounds. It charges $3.89 per pound of top-grade ground beef.
The variable cost per pound is $2.99. What is the contribution margin per pound of ground beef
sold?
Trả lời
●

A. -$0.30

●

B. -$0.60

●

C. -$0.90

●

D. -$2.99

●

E. -$3.89

●
●
●

Câu hỏi số 64
-Ralph and Emma's is considering a project with total sales of $17,500, total variable costs of
$9,800, total fixed costs of $3,500, and estimated production of 400 units. The depreciation
expense is $2,400 a year. What is the contribution margin per unit?
Trả lời
●

A. -$4.50

●

B. -$10.50


●

C. -$14.14

●

D. -$19.09

●

E. -$19.25

●
●
●

Câu hỏi số 65
-You are considering a new project. The project has projected depreciation of $720, fixed costs
of $6,000, and total sales of $11,760. The variable cost per unit is $4.20. What is the accounting
break-even level of production?
Trả lời
●

A. -1,200 units

●

B. -1,334 units

●

C. -1,372 units

●

D. -1,889 units

●

E. -1,910 units

●
●
●

Câu hỏi số 66


-The accounting break-even production quantity for a project is 5,425 units. The fixed costs are
$31,600 and the contribution margin is $6. What is the projected depreciation expense?
Trả lời
●

A. -$700

●

B. -$950

●

C. -$1,025

●

D. -$1,053

●

E. -$1,100

●
●
●

Câu hỏi số 67
-The accounting break-even production quantity for a project is 5,600 units. The fixed costs are
$39,650 and the contribution margin is $8. What is the projected depreciation expense?
Trả lời
●

A. -$4,480

●

B. -$5,100

●

C. -$5,150

●

D. -$5,320