Skip to main content
Sarkari MCQs Government Exam Question Bank
Menu
Question no. 354

If the unit contribution margin is $16700 and the change in quantity sold is 20 units, the change in variable costing operating income is _________?

Select your answer for: If the unit contribution margin is $16700 and the change in quantity sold is 20 units, the change in variable costing operating income is _________?
Show answer

Answer: D. 334 units

Explanation

The change in variable costing operating income equals the unit contribution margin multiplied by the change in quantity sold.

Category
Accounting
Topic
—
Difficulty
medium

Related questions

Q1. If the budgeted input price is $80 and the price variance is $40, the actual price is ___________?

Select your answer for: If the budgeted input price is $80 and the price variance is $40, the actual price is ___________?
Show answer

Answer: B. $120

Adding the price variance to the budgeted input price gives actual price. This calculation reverses the standard price variance formula components. The resulting one hundred twenty dollars represents the exact actual pri...

Q2. If indirect support labor is $5000, equipment maintenance setup cost is $7000, and machinery lease cost is $4000, the total variable fixed cost is ___________?

Select your answer for: If indirect support labor is $5000, equipment maintenance setup cost is $7000, and machinery lease cost is $4000, the total variable fixed cost is ___________?
Show answer

Answer: B. $12,000

Total cost is found by summing the individual support, maintenance, and lease cost components.

Q3. If the unit contribution margin is $800 and the selling price is $20000, the contribution margin percentage is _____________?

Select your answer for: If the unit contribution margin is $800 and the selling price is $20000, the contribution margin percentage is _____________?
Show answer

Answer: C. 4%

Dividing unit contribution margin by selling price yields the percentage. The mathematical division correctly calculates the proportion of revenue remaining. The resulting four percent accurately reflects the contributio...

Q4. If current assets are $856000 and working capital is $654500, the current liabilities are ___________?

Select your answer for: If current assets are $856000 and working capital is $654500, the current liabilities are ___________?
Show answer

Answer: C. $201,500

Subtracting working capital from current assets gives current liabilities. This formula rearranges the standard working capital definition equation. The resulting two hundred one thousand dollars accurately represents li...

Q5. If the contribution margin of a bundle is $4000 and the bundle's revenue is $16000, the contribution margin percentage for the bundle is _____________?

Select your answer for: If the contribution margin of a bundle is $4000 and the bundle's revenue is $16000, the contribution margin percentage for the bundle is _____________?
Show answer

Answer: C. 25%

Dividing bundle contribution margin by bundle revenue yields the percentage. The mathematical division correctly calculates the profit ratio for the bundle. The resulting twenty-five percent accurately represents the mar...

Q6. If the unit contribution margin is $700 and the break-even per unit is $40, the fixed cost is _____________?

Select your answer for: If the unit contribution margin is $700 and the break-even per unit is $40, the fixed cost is _____________?
Show answer

Answer: B. $28,000

Multiplying break-even volume by unit contribution margin yields fixed cost. This calculation applies the fundamental breakeven relationship equation. The resulting twenty-eight thousand dollars accurately represents fix...

New!

Mock Test System is now available!

Prepare for your exam with interactive mock tests. Select your subjects, attempt 100 random MCQs against the clock, and see exactly where you stand.

Start Mock Test