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Cost-Volume-Profit (CVP) Analysis · CAPE Accounting Unit 2

36 past-paper questions on Cost-Volume-Profit (CVP) Analysis, part of Module 3: Planning and Decision Making, from every CAPE Accounting Unit 2 paper on Quelpr.

Practise Cost-Volume-Profit (CVP) Analysis
  1. 3(a)(i)1 mark· CAPE Accounting Unit 2 · 2002 · Paper 2Calculate the company's contribution margin ratio.
  2. 3(a)(ii)3 marks· CAPE Accounting Unit 2 · 2002 · Paper 2Compute the quarterly break-even point in units sold and in sales dollars.
  3. 3(a)(iii)2 marks· CAPE Accounting Unit 2 · 2002 · Paper 2How many units would have to be sold each quarter to earn a target profit of $90,000?
  4. 3(a)(iv)3 marks· CAPE Accounting Unit 2 · 2002 · Paper 2Using the sales level arrived at (iii) prepare a contribution income statement.
  5. 3(a)(v)2 marks· CAPE Accounting Unit 2 · 2002 · Paper 2Compute the company's margin of safety in both dollar and percentage terms.
  6. 3(a)(vi)1 mark· CAPE Accounting Unit 2 · 2002 · Paper 2If existing sales increase by $50,000 per quarter and there is NO change in fixed expenses, by how much would you expect quarterly net income to increase?
  7. 3(a)(vii)6 marks· CAPE Accounting Unit 2 · 2002 · Paper 2Management considers using a faster machine which increases variable expenses by 3.00 per unit while increasing sales by 20%, and retrenching a quality inspector paid 64,000 per year. Assuming these changes are made,…
  8. 3(a)(viii)2 marks· CAPE Accounting Unit 2 · 2002 · Paper 2Using the information contained in the requirement above calculate the new break-even point in units.
  9. 1(c)15 marks· CAPE Accounting Unit 2 · 2004 · Paper 2Prepare an income statement showing the impact of closing the Bago Craft Jet Ski plant.
  10. 3(b)(i)2 marks· CAPE Accounting Unit 2 · 2008 · Paper 2Compute the contribution margin.
  11. 3(b)(ii)4 marks· CAPE Accounting Unit 2 · 2008 · Paper 2Calculate the number of children who must be enrolled in order for the centre to break even.
  12. 3(b)(iii)5 marks· CAPE Accounting Unit 2 · 2008 · Paper 2Calculate the margin of safety in dollars AND as a percentage of budgeted revenue, if the budgeted enrolment of the day care centre is 135 children.
  13. 3(c)(ii)3 marks· CAPE Accounting Unit 2 · 2008 · Paper 2Determine the contribution margin per kg of material used in EACH product.
  14. 3(c)(iv)1 mark· CAPE Accounting Unit 2 · 2008 · Paper 2Cork Hill Company would like to maximize its income from the production of the three products. State the criteria that should be used by the company to allocate the 5 000 kg of raw materials among the three products.
  15. 3(c)(v)3 marks· CAPE Accounting Unit 2 · 2008 · Paper 2Determine the amount of EACH product that Cork Hill Company should produce during the following month.
  16. 3(c)(i)1 mark· CAPE Accounting Unit 2 · 2009 · Paper 2Calculate the current contribution margin per box of gourmet chocolate.
  17. 3(c)(ii)3 marks· CAPE Accounting Unit 2 · 2009 · Paper 2Compute the current break-even point, in dollars, before the cost increase.
  18. 3(c)(iii)4 marks· CAPE Accounting Unit 2 · 2009 · Paper 2Compute the company's expected net income for next year.
  19. 3(c)(iv)2 marks· CAPE Accounting Unit 2 · 2009 · Paper 2Assuming the cost of chocolate increases by 20 percent, calculate the new selling price required to maintain the current contribution margin rate.
  20. 3(a)(i)2 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Calculate the contribution margin ratio.
  21. 3(a)(ii)3 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Calculate the number of tickets that must be sold to break even in units and in dollars.
  22. 3(a)(iii)2 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Calculate the number of tickets that must be sold to earn a target profit of $50 000.
  23. 3(b)4 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Identify four non-financial factors that can influence Fanciful Enterprises' ticket pricing decision.
  24. 3(a)(i)5 marks· CAPE Accounting Unit 2 · 2014 · Paper 2List FIVE assumptions of breakeven analysis.
  25. 3(a)(ii)5 marks· CAPE Accounting Unit 2 · 2014 · Paper 2State why EACH of the five assumptions stated in (a)(i) may NOT always be true.
  26. 3(b)(i)3 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Calculate the breakeven point in units.
  27. 3(b)(ii)3 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Calculate the breakeven point in dollars.
  28. 3(b)(iii)3 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Calculate the margin of safety in units.
  29. 3(b)(iv)3 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Calculate the margin of safety in dollars.
  30. 3(a)(i)6 marks· CAPE Accounting Unit 2 · 2017 · Paper 2Calculate the break even point in units.
  31. 3(a)(ii)3 marks· CAPE Accounting Unit 2 · 2017 · Paper 2Calculate the break even point in dollars ($).
  32. 3(a)(i)4 marks· CAPE Accounting Unit 2 · 2019 · Paper 2Calculate the breakeven in units.
  33. 3(a)(ii)2 marks· CAPE Accounting Unit 2 · 2019 · Paper 2Calculate the margin of safety.
  34. 3(a)(iii)4 marks· CAPE Accounting Unit 2 · 2019 · Paper 2Calculate the number of units that must be sold if the company wants to make a total profit of $4 306 500 for the quarter.
  35. 3(a)(i)2 marks· CAPE Accounting Unit 2 · 2022 · Paper 2State TWO assumptions of breakeven analysis.
  36. 3(a)(ii)13 marks· CAPE Accounting Unit 2 · 2022 · Paper 2Using limiting factor analysis, calculate the optimum total contribution margin for Lagoon Ltd, showing all working.

Related topics in Module 3: Planning and Decision Making