E3 - Strategic Management Question Tutorial: CIMAPRO17-BA2-X1-ENG

Which of the following is a relevant cost?

A. A sunk cost

B. A committed cost

C. An incremental cost

D. A historical cost

An organisation produces and sells a single product. The organisation's management accountant has reported the following information for the most recent period.

Which TWO of the following statements are valid? (Choose two.)

A. If the contribution to sales ratio changed to 30%, the breakeven point would become higher.

B. If the fixed cost changed to $445,000, the breakeven point would not change.

C. If the sales volume changed to 220,000 units, the breakeven point would not change.

D. If the selling price changed to $22 per unit, the breakeven point would become lower.

E. If the variable cost changed to $16 per unit, the breakeven point would become lower.

A company produces a single product for which the following cost data are available.

Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs.

What is the marginal cost per unit?

A. $6

B. $7

C. $8

D. $9