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##### Acct504_MCQs_02 Dec

**Description**

solution

**Question**

Question;Slappy Corporation;leases its corporate headquarters building. This lease cost is fixed with;respect to the company's sales volume. In a recent month in which the sales;volume was 20,000 units, the lease cost was $482,000.;1.;To the nearest whole;dollar, what should be the total lease cost at a sales volume of 16,900 units;in a month? (Assume that this sales volume is within the relevant;range.);A.;$407,290;B.;$482,000;C.;$570,414;D.;$444,645;2.;To the nearest whole;cent, what should be the average lease cost per unit at a sales volume of;19,200 units in a month? (Assume that this sales volume is within the;relevant range.);A.;$28.52;B.;$24.60;C.;$25.10;D.;$24.10;Getchman Marketing;Inc., a merchandising company, reported sales of $592,500 and cost of goods;sold of $305,000 for April. The company's total variable selling expense was;$37,500, its total fixed selling expense was $16,000, its total variable;administrative expense was $35,000, and its total fixed administrative;expense was $38,900. The cost of goods sold in this company is a variable;cost.;3.;The contribution;margin for April is;A.;$465,100;B.;$287,500;C.;$160,100;D.;$215,000;4;The gross margin for;April is;A.;$287,500;B.;$215,000;C.;$537,600;D.;$160,100;A company has;provided the following data;5. If the sales volume decreases by 25%, the;variable cost per unit increases by 15%, and all other factors remain the;same, net operating income will;A.;decrease by;$31,875.;B.;decrease by;$15,000.;C.;increase by;$20,625.;D.;decrease by;$3,125.;6. Balonek Inc.'s contribution margin ratio is;57% and its fixed monthly expenses are $41,000. Assuming that the fixed;monthly expenses do not change, what is the best estimate of the company's;net operating income in a month when sales are $112,000?;A.;$63,840;B.;$7,160;C.;$71,000;D.;$22,840;A manufacturing;company that produces a single product has provided the following data concerning;its most recent month of operations;7. What is the absorption costing unit product;cost for the month?;A.;$102;B.;$130;C.;$97;D.;$125;8. Veltri Corporation is working on its direct;labor budget for the next two months. Each unit of output requires 0.77;direct labor-hours. The direct labor rate is $11.20 per direct labor-hour.;The production budget calls for producing 7,100 units in October and 6,900;units in November. The company guarantees its direct labor workers a 40-hour;paid work week. With the number of workers currently employed, that means;that the company is committed to paying its direct labor work force for at;least 5,480 hours in total each month even if there is not enough work to;keep them busy. What would be the total combined direct labor cost for the;two months?;A.;$122,752.00;B.;$120,736.00;C.;$120,881.60;D.;$122,606.40;9. A company's current net operating income is;$16,800 and its average operating assets are $80,000. The company's required;rate of return is 18%. A new project being considered would require an;investment of $15,000 and would generate annual net operating income of;$3,000. What is the residual income of the new project?;A.;20.8%;B.;20%;C.;($150);D.;$300;Beall;Industries is a division of a major corporation. Last year the division had;total sales of $20,160,000, net operating income of $1,592,640, and average;operating assets of $8,000,000.;10.;The;division's margin is closest to;A.;39.7%;B.;47.6%;C.;7.9%;D.;19.9%;11.;The;division's turnover is closest to;A.;2.52;B.;2.10;C.;0.20;D.;12.66;12.;The;division's return on investment (ROI) is closest to;A.;19.9%;B.;16.6%;C.;1.6%;D.;5.7%

Paper#45585 | Written in 18-Jul-2015

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