CVP Analysis and Marginal Analysis Paper 12


Thomas Company sells products X, Y, and Z. Thomas sells three units of X for each unit of Z, and two units of Y for each unit of X. The contribution margins are $1.00 per unit of X, $1.50 per unit of Y, and $3.00 per unit of Z. Fixed costs are $600,000. How many units of X would Thomas sell at the break even point?


In calculating the breakeven point for a multiproduct company, which of the following assumptions are commonly made when variable costing is used?
I. Sales volume equals production volume.
II. Variable costs are constant per unit.
III. A given sales mix is maintained for all volume changes.


Using the variable costing method, which of the following costs are assigned to inventory?
Variable selling and administrative costs . . . Variable factory overhead costs


A single-product company prepares income statements using both absorption and variable costing methods. Manufacturing overhead cost applied per unit produced in 2012 was the same as in 2011. The 2012 variable costing statement reported a profit whereas the 2012 absorption costing statement reported a loss. The difference in reported income could be explained by units produced in 2012 being


Which of the following is an output of a financial planning model?


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