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Managerial Accounting, Ch.5




Question;Multiple Choice Question 42An increase in the level of activity will have the following effects on unit costs for variable and fixed costs:Unit Variable CostUnit Fixed CostARemains constantDecreasesBIncreasesDecreasesCDecreasesRemains constantDRemains constantRemains constantGribble Company's high and low level of activity last year was 60,000 units of product produced in May and 20,000 units produced in November. Machine maintenance costs were $104,000 in May and $40,000 in November. Using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units.A$90,000B$80,000C$96,000D$78,000Multiple Choice Question 86Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?A70%B30%C40%D60%Multiple Choice Question 88If a company had a contribution margin of $750,000 and a contribution margin ratio of 40%, total variable costs must have beenA$450,000.B$300,000.C$1,125,000.D$1,875,000.Multiple Choice Question 92Dunbar Manufacturing's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $44,000. If sales are expected to increase $80,000, by how much will the company's net income increase?A$36,000B$12,000C$56,000D$24,000Multiple Choice Question 97At the break-even point of 2,000 units, variable costs are $110,000, and fixed costs are $64,000. How much is the selling price per unit?A$32BNot enough informationC$87D$23Multiple Choice Question 108Fixed costs are $600,000 and the variable costs are 75% of the unit selling price. What is the break-even point in dollars?A$2,400,000B$1,400,000C$1,800,000D$800,000Multiple Choice Question 114Walters Corporation sells radios for $50 per unit. The fixed costs are $420,000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $100,000 and variable costs will be 50% of the selling price. The new break-even point in units is:A21,000B20,600C16,800D20,800Multiple Choice Question 139How much sales are required to earn a target net income of $160,000 if total fixed costs are $200,000 and the contribution margin ratio is 40%?A$500,000B$810,000C$900,000D$400,000Multiple Choice Question 142The following monthly data are available for Seasons Company which produces only one product: Selling price per unit, $42, Unit variable expenses, $14, Total fixed expenses, $84,000, Actual sales for the month of June, 5,000 units. How much is the margin of safety for the company for June?A$56,000B$126,000C$2,000D$84,000


Paper#37609 | Written in 18-Jul-2015

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