CMA Part 2 Practice Exam 8

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Part 2 Practice Exam 8

CMA Part 2
Practice Exams

CMA Part 2 Practice Exam 8

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1. Question

Coastal Outfitters sells kayaks for $450 each. The variable cost per unit is $270, and annual fixed costs are $162,000. How many units must Coastal sell to break even?

2. Question

A company has fixed costs of $300,000 and a contribution margin ratio of 40%. If sales increase by $100,000, by how much will operating income increase, assuming fixed costs remain unchanged?

3. Question

4. Question

A company is deciding whether to replace an old machine purchased three years ago for $80,000. The machine’s current book value is $32,000, and it could be sold today for $10,000. In evaluating the replacement decision, the $32,000 book value should be treated as:

5. Question

A company’s total cost function is TC = $50,000 + $12Q, where Q is units produced. At a production level of 5,000 units, total revenue is $110,000. If the company produces and sells one additional unit, by how much will total cost increase?

6. Question

7. Question

8. Question

A company has 8,000 units of Product X that can be sold at the split-off point for $12 each, or processed further at an additional cost of $25,000 to become Product X-Plus, which can be sold for $16 each. Should the company sell at split-off or process further?

9. Question

10. Question

A company is currently operating at full capacity and receives a special order that, if accepted, would require reducing production of its regular product line. In evaluating whether to accept the special order, which of the following must be included as a relevant cost?

Next: CMA Part 2 Practice Exam 9

CMA Part 2Practice Exams

CMA Part 2 Practice Exam 8

Quiz Summary

Information

Results

Results

Categories

1. Question

Coastal Outfitters sells kayaks for $450 each. The variable cost per unit is $270, and annual fixed costs are $162,000. How many units must Coastal sell to break even?

2. Question

A company has fixed costs of $300,000 and a contribution margin ratio of 40%. If sales increase by $100,000, by how much will operating income increase, assuming fixed costs remain unchanged?

3. Question

4. Question

A company is deciding whether to replace an old machine purchased three years ago for $80,000. The machine’s current book value is $32,000, and it could be sold today for $10,000. In evaluating the replacement decision, the $32,000 book value should be treated as:

5. Question

A company’s total cost function is TC = $50,000 + $12Q, where Q is units produced. At a production level of 5,000 units, total revenue is $110,000. If the company produces and sells one additional unit, by how much will total cost increase?

6. Question

7. Question

8. Question

A company has 8,000 units of Product X that can be sold at the split-off point for $12 each, or processed further at an additional cost of $25,000 to become Product X-Plus, which can be sold for $16 each. Should the company sell at split-off or process further?

9. Question

10. Question

A company is currently operating at full capacity and receives a special order that, if accepted, would require reducing production of its regular product line. In evaluating whether to accept the special order, which of the following must be included as a relevant cost?

Next: CMA Part 2 Practice Exam 9

CMA Part 2
Practice Exams