Use the Following Information for Questions

question 82

Multiple Choice

Use the following information for questions.
Financial statements for Kiner Company are given below:

Total assets on the statement of financial position at December 31, 2011 are $2,216,000.Accumulated deprecia-tion on the equipment sold was $112,000.
-The book value of the buildings and equipment at December 31, 2011 was

• A)$1,016,000.
• B)$1,040,000.
• C)$1,424,000.
• D)$1,176,000.

Understand the concept of sales price per unit, variable cost per unit, and fixed cost.

Able to compute contribution margin ratio and understand its significance.

Compute the margin of safety in dollars and understand its importance for business stability.

Understand the concept of sales mix and its impact on break-even analysis.

---

Definitions:

Sigmund Freud

An Austrian neurologist best known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Spiritual Certainty

A firm belief in spiritual truths or doctrines, often without need for physical evidence.

Defense Mechanism

Psychological strategies brought into play by individuals, groups, or even nations to cope with realities and to maintain self-image.

Reaction Formation

A psychological defense mechanism where an individual unconsciously replaces unacceptable thoughts or feelings with their opposites.