# score 100 the three most common cost behavior classifications are removed a fixed co 3625551

SCOre 100%

The three most common cost behavior classifications are:

 [removed] a. fixed costs, variable costs, and mixed costs.
 [removed] b. variable costs, product costs, and sunk costs.
 [removed] c. variable costs, sunk costs, and opportunity costs.
 [removed] d. variable costs, period costs, and differential costs.

Manley Co. manufactures office furniture. During the most productive month of the year, 4,500 desks were manufactured at a total cost of \$86,625. In its slowest month, the company made 1,800 desks at a cost of \$49,500. Using the high-low method of cost estimation, total fixed costs are:

 [removed] a. \$61,875
 [removed] b. \$33,875
 [removed] c. \$24,750
 [removed] d. cannot be determined from the data given

If fixed costs increased and variable costs per unit decreased, the break-even point would:

 [removed] a. decrease.
 [removed] b. remain the same.
 [removed] c. increase.
 [removed] d. cannot be determined from the data provided

If sales are \$808,258, variable costs are 65% of sales, and operating income is \$222,866, what is the contribution margin ratio?

Select the correct answer.

 [removed] 35%
 [removed] 28%
 [removed] 65%
 [removed] 72%

Which of the following conditions would cause the break-even point to decrease?

 [removed] a. Unit variable cost increases
 [removed] b. Unit selling price decreases
 [removed] c. Total fixed costs increase
 [removed] d. Unit variable cost decreases

In cost-volume-profit analysis, all costs are classified into the following two categories:

 [removed] a. variable costs and fixed costs
 [removed] b. mixed costs and variable costs
 [removed] c. sunk costs and fixed costs
 [removed] d. discretionary costs and sunk costs

Zeke Company sells 25,000 units at \$21 per unit. Variable costs are \$10 per unit, and fixed costs are \$75,000. The contribution margin ratio and the unit contribution margin are:

 [removed] a. 47% and \$11 per unit.
 [removed] b. 52% and \$11 per unit.
 [removed] c. 47% and \$8 per unit.
 [removed] d. 53% and \$7 per unit

Which of the graphs in Figure 20-1 illustrates the behavior of a total variable cost?

 [removed] a. Graph 2
 [removed] b. Graph 4
 [removed] c. Graph 1
 [removed] d. Graph 3

Contribution margin is:

 [removed] a. the same as sales revenue.
 [removed] b. another term for volume in the “cost-volume-profit” analysis.
 [removed] c. the excess of sales revenue over variable cost.
 [removed] d. profit.

Forde Co. has an operating leverage of 4. Sales are expected to increase by 12% next year. Operating income is:

 [removed] a. expected to increase by 3%
 [removed] b. unaffected
 [removed] c. expected to increase by 4 %
 [removed] d. expected to increase by 48%

If sales are \$861,399, variable costs are \$421,360, and operating income is \$276,326, what is the contribution margin ratio?

Select the correct answer.

 [removed] 81%
 [removed] 32%
 [removed] 49%
 [removed] 51%

 Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are:

What was Carter Co.&#39;s weighted average variable cost?

 [removed] a. \$ 70
 [removed] b. \$ 64
 [removed] c. \$140
 [removed] d. \$ 60

If fixed costs are \$241,258, the unit selling price is \$115, and the unit variable costs are \$73, what is the break-even sales (units)?

Select the correct answer.

 [removed] 73 units
 [removed] 5,744 units
 [removed] 2,098 units
 [removed] 4,825 units

Which of the following is an example of a cost that varies in total as the number of units produced changes?

 [removed] a. Straight-line depreciation on factory equipment
 [removed] b. Direct materials cost
 [removed] c. Salary of a production supervisor
 [removed] d. Property taxes on factory buildings

Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are:

What was Carter Co.&#39;s weighted average unit selling price?

 [removed] a. \$200
 [removed] b. \$100
 [removed] c. \$ 88
 [removed] d. \$ 80

Ingram Co. manufactures office furniture. During the most productive month of the year, 3,271 desks were manufactured at a total cost of \$84,759. In its slowest month, the company made 1,211 desks at a cost of \$39,935. Using the high-low method of cost estimation determine total fixed costs are.

Select the correct answer.

 [removed] \$39,935
 [removed] \$44,824
 [removed] \$84,759
 [removed] \$13,585

The systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits is termed:

 [removed] a. budgetary analysis.
 [removed] b. gross profit analysis.
 [removed] c. contribution margin analysis.
 [removed] d. cost-volume-profit analysis.

If sales are \$500,000, variable costs are 75% of sales, and operating income is \$40,000, what is the operating leverage?

 [removed] a. 3.1
 [removed] b. 1.3
 [removed] c. 1.25
 [removed] d. 0