1.As more units of a product are sold, the variable cost per unit typically
Goes up
Goes down
Remains constant
Becomes a fixed cost
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2.As more units of a product are sold, the total fixed cost typically
Goes up
Goes down
Remains constant
Becomes a variable cost
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3.
Use the following information for Boxware Corporation to answer the next three questions.
Sales price per unit $190 Variable cost per unit $80 Average production 1,500 units per month Total fixed costs $55,000 per month
What is Boxware's contribution margin per unit?
$ 80
$110
$190
$270
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4.Use the following information for Boxware Corporation to answer the next three questions.
Sales price per unit $190 Variable cost per unit $80 Average production 1,500 units per month Total fixed costs $55,000 per month
How many units per month must Boxware sell to break even?
500
1,000
1,500
2,000
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5.Use the following information for Boxware Corporation to answer the next three questions.
Sales price per unit $190 Variable cost per unit $80 Average production 1,500 units per month Total fixed costs $55,000 per month
What amount of sales in dollars must Boxware achieve each month in order to break even?
$95,000
$190,000
$285,000
$380,000
1.As more units of a product are sold, the variable cost per unit typically
| Goes up | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goes down | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Remains constant | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Becomes a fixed cost ---------------------------------------------------------------------------------------------------- 2.As more units of a product are sold, the total fixed cost typically
------------------------------------------------------------------ 3. Use the following information for Boxware Corporation to answer the next three questions.
What is Boxware's contribution margin per unit?
------------------------------------------------------------------------------- 4.Use the following information for Boxware Corporation to answer the next three questions.
How many units per month must Boxware sell to break even?
---------------------------------------------------------------------------------------------------- 5.Use the following information for Boxware Corporation to answer the next three questions.
What amount of sales in dollars must Boxware achieve each month in order to break even?
|
Related questions
1.As more units of a product are sold, the variable cost per unit typically
| Goes up | ||
| Goes down | ||
| Remains constant | ||
| Becomes a fixed cost |
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2.As more units of a product are sold, the total fixed cost typically
| Goes up | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Goes down | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Remains constant | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Becomes a variable cost ----------------------------------- 3.Use the following information for Boxware Corporation to answer the next three questions.
What is Boxware's contribution margin per unit? $ 80 $110 $190 $270 ---------------------------------- 4.Use the following information for Boxware Corporation to answer the next three questions.
How many units per month must Boxware sell to break even?
5.Use the following information for Boxware Corporation to answer the next three questions.
What amount of sales in dollars must Boxware achieve each month in order to break even?
|
The Clyde Corporation's variable expenses are 40% of sales.Clyde Corporation is contemplating an advertising campaign thatwill cost $28,000. If sales increase by $78,000, the company's netoperating income will increase by: |
$3,200
$31,200
$18,800
$63,600
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Deboer Company, which has only one product, has provided thefollowing data concerning its most recent month of operations: |
| Selling price | $161 |
| Units in beginninginventory | 50 |
| Units produced | 1,550 |
| Units sold | 1,580 |
| Units in endinginventory | 20 |
| Variable costs perunit: | |
| Directmaterials | $53 |
| Direct labor | $30 |
| Variablemanufacturing overhead | $7 |
| Variable selling andadministrative | $12 |
| Fixed costs: | |
| Fixed manufacturingoverhead | $15,500 |
| Fixed selling andadministrative | $39,500 |
| What is the total period costfor the month under the variable costing approach? |
$55,000
$73,960
$58,460
$15,500
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HarrisCorporation produces a single product. Last year, Harrismanufactured 32,210 units and sold 26,700 units. Production costsfor the year were as follows: |
| Fixed manufacturingoverhead | $418,730 |
| Variablemanufacturing overhead | $251,238 |
| Direct labor | $157,829 |
| Directmaterials | $241,575 |
Sales were $1,241,550, for the year, variable selling andadministrative expenses were $138,840, and fixed selling andadministrative expenses were $199,702. There was no beginninginventory. Assume that direct labor is a variable cost. |
The contribution margin per unit would be: (Do not roundintermediate calculations.) |
$26.30 per unit
$16.80 per unit
$22.80 per unit
$21.10 per unit
13 A manufacturing company that produces a single product hasprovided the following data concerning its most recent month ofoperations: |
Selling price | $149 |
Units in beginning inventory | 0 |
Units produced | 2,770 |
Units sold | 2,520 |
Units in ending inventory | 250 |
Variable costs per unit: | |
Direct materials | $51 |
Direct labor | $20 |
Variable manufacturing overhead | $10 |
Variable selling and administrative | $12 |
Fixed costs: | |
Fixed manufacturing overhead | $96,950 |
Fixed selling and administrative expenses | $35,280 |
The total gross margin for the month under absorption costingis: |
$83,160
$17,640
$130,320
$141,120
14 A manufacturing company that produces a single product hasprovided the following data concerning its most recent month ofoperations: |
Units in beginning inventory | 0 |
Units produced | 4,750 |
Units sold | 4,650 |
Units in ending inventory | 100 |
Variable costs per unit:
Direct materials | $ | 56 |
Direct labor | $ | 58 |
Variable manufacturing overhead | $ | 21 |
Variable selling and administrative | $ | 19 |
Fixed costs:
Fixed manufacturing overhead | $ | 99,750 |
Fixed selling and administrative | $ | 46,500 |
What is the variable costing unit product cost for the month?
$154 per unit
$175 per unit
$135 per unit
$141 per unit
Top of Form
15 Bartelt Inc., which produces a single product, has providedthe following data for its most recent month of operations: |
Number of units produced | 4,600 |
Variable costs per unit: | |
Direct materials | $108 |
Direct labor | $105 |
Variable manufacturing overhead | $5 |
Variable selling and administrative expense | $12 |
Fixed costs: | |
Fixed manufacturing overhead | $184,000 |
Fixed selling and administrative expense | $322,000 |
There were no beginning or ending inventories. The absorptioncosting unit product cost was: |
$213 per unit
$258 per unit
$218 per unit
$340 per unit
16 Rehmer Corporation is working on its direct labor budget forthe next two months. Each unit of output requires 0.09 directlabor-hours. The direct labor rate is $8.50 per direct labor-hour.The production budget calls for producing 5,600 units in June and6,100 units in July. |
Required: | ||||||||||||||||||
| Construct the direct labor budget for the next two months,assuming that the direct labor work force is fully adjusted to thetotal direct labor-hours needed each month. (Round youranswers to 2 decimal places.)
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