61. Wellcom Corporation has the following sales mix for its three products: A 20%; B 35%; and C 45%. Fixed costs total $400 000 and the weighted-average contribution margin is $100. How many units of product A must be sold to break-even? A. 800. B. 4 000. C. 20 000. D. An amount other than those above. E. Cannot be determined based on the information presented. Jamal & Co. makes and sells two types of shoes Plain and Fancy. Data concerning these products are as follows: .0/msohtmlclip1/01/clip_image002.png”> Sixty percent of the unit sales are Plain and annual fixed expenses are $45 000. 62. The weighted-average unit contribution margin is: A. $4.80. B. $9.00. C. $9.25. D. $17.00. E. an amount other than those above. 63. Assuming that the sales mix remains constant the total number of units that Jamal must sell to break even is: A. 2 432. B. 2 647. C. 4 737. D. 5 000. E. an amount other than those above. 64. Assuming that the sales mix remains constant the number of units of Plain that Jamal must sell to break even is: A. 2 000. B. 3 000. C. 3 375. D. 5 000. E. 5 625. 65. Assuming that the sales mix remains constant the number of units of Fancy that Jamal must sell to break even is: A. 2 000. B. 3 000. C. 3 375. D. 5 000. E. 5 625. 66. Which of the following underlying assumptions form(s) the basis for cost-volume-profit analysis? A. Revenues and costs behave in a linear manner. B. Costs can be categorized as variable fixed or semivariable. C. Worker efficiency and productivity remain constant. D. In multiproduct organizations the sales mix remains constant. E. All of these are assumptions that underlie cost-volume-profit analysis. 67. Cost-volume-profit analysis is based on certain general assumptions. Which of the following is not one of these assumptions? A. Product prices will remain constant as volume varies within the relevant range. B. Costs can be categorized as fixed variable or semivariable. C. The efficiency and productivity of the production process and workers will change to reflect manufacturing advances. D. Total fixed costs remain constant as activity changes. E. Unit variable cost remains constant as activity changes. 68. The assumptions on which cost-volume-profit analysis is based appear to be most valid for businesses: A. over the short run. B. over the long run. C. over both the short run and the long run. D. in periods of sustained profits. E. in periods of increasing sales. 69. The contribution income statement differs from the traditional income statement in which of the following ways? A. The traditional income statement separates costs into fixed and variable components. B. The traditional income statement subtracts all variable costs from sales to obtain the contribution margin. C. Cost-volume-profit relationships can be analyzed more easily from the contribution income statement. D. The effect of sales volume changes on profit is readily apparent on the traditional income statement. E. The contribution income statement separates costs into product and period categories. 70. Which of the following does not typically appear on a contribution income statement? A. Net income. B. Gross margin. C. Contribution margin. D. Total variable costs. E. Total fixed costs.
