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.'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.'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