Management Accounting - Study Mode

[#136] Selling price is multiplied to quantity of sold units to calculate
Correct Answer

(A) revenues

Explanation

Solution: Selling price is multiplied to quantity of sold units to calculate revenues. Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to determine net income.

[#137] In a relevant range, variable cost per unit, selling price and total fixed costs are
Correct Answer

(D) known and constant

Explanation

Solution: In a relevant range, variable cost per unit, selling price and total fixed costs are known and constant.

[#138] If fixed cost is $30000 and contribution margin per unit is $600 per unit, then breakeven in units will be
Correct Answer

(A) 50 units

Explanation

Solution: Breakeven in units = Fixed cost ÷ Contribution margin per unit = $30000 ÷ $600 = 50 units.

[#139] If contribution margin per unit is $500 and contribution margin percentage is 25%, then selling price will be
Correct Answer

(A) $2,000

Explanation

Solution: Selling price = Contribution margin per unit ÷ Contribution margin percentage = $500 ÷ 25% = $2,000.

[#140] If contribution margin percentage is 20% and selling price is $4000, then contribution margin per unit will be
Correct Answer

(D) $800

Explanation

Solution: Contribution margin per unit = Selling price × Contribution margin percentage = $4000 × 20% = $800.