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MCQs

Total Questions : 50 | Page 5 of 5 pages
Question 41. If the target net income is $9600 and the tax rate is 40%, then the target operating income would be
  1.    $10,000
  2.    $12,000
  3.    $16,000
  4.    $14,000
 Discuss Question
Answer: Option C. -> $16,000
Answer: (c).$16,000
Question 42. If the fixed cost is $20000, the target operating income is $10000 and the contribution margin per unit is $1200 then required units to be sold will be
  1.    55 units
  2.    45 units
  3.    35 units
  4.    25 units
 Discuss Question
Answer: Option D. -> 25 units
Answer: (d).25 units
Question 43. If the budgeted revenue is $50000 and the breakeven revenue is $35000, then the margin of safety would be
  1.    $12,000
  2.    $14,000
  3.    $15,000
  4.    $16,000
 Discuss Question
Answer: Option C. -> $15,000
Answer: (c).$15,000
Question 44. The set of all the occurrences that may happen in near future or in any other fixed time are called
  1.    events
  2.    distribution
  3.    outcome
  4.    actions
 Discuss Question
Answer: Option A. -> events
Answer: (a).events
Question 45. If the target net income is $36000 and the tax rate is 40%, then the target operating income will be
  1.    $10,000
  2.    $20,000
  3.    $40,000
  4.    $60,000
 Discuss Question
Answer: Option D. -> $60,000
Answer: (d).$60,000
Question 46. If the contribution margin is $25000 and the revenues are $60000, then all the variable costs will be
  1.    −$85000
  2.    −$35000
  3.    $85,000
  4.    $35,000
 Discuss Question
Answer: Option D. -> $35,000
Answer: (d).$35,000
Question 47. The amount of money by which the total revenues exceed the breakeven revenues is classified as
  1.    margin of safety
  2.    margin of profit
  3.    margin of loss
  4.    margin of income
 Discuss Question
Answer: Option A. -> margin of safety
Answer: (a).margin of safety
Question 48. The gross margin is added into cost of sold goods to calculate the
  1.    revenues
  2.    operating leverage
  3.    contribution margin
  4.    operating margin
 Discuss Question
Answer: Option A. -> revenues
Answer: (a).revenues
Question 49. If the contribution margin of bundle is $45000 and the revenue of the bundle is $15000, then the contribution margin percentage for bundle will be
  1.    6%
  2.    3%
  3.    9%
  4.    12%
 Discuss Question
Answer: Option B. -> 3%
Answer: (b).3%
Question 50. If the fixed cost is $65000 and the contribution margin percentage for the bundle is 0.575, then the breakeven revenue will be
  1.    $113,043.48
  2.    $1,200,000
  3.    $130,000
  4.    $140,000
 Discuss Question
Answer: Option A. -> $113,043.48
Answer: (a).$113,043.48

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