Question :
71. During the past year a company had total fixed : 1256599
71. During the past year a company had total fixed costs of $700,000. Its product sold for $93 per unit. Variable costs during this time equaled $45 per unit. Next year the company is anticipating a 10% increase in total fixed costs and a $3 per unit decrease in variable costs but would like to maintain its current selling price per unit. How many units must the company sell next year to earn $1 million? (Round answer to complete units.)A. 19,608B. 34,706C. 36,875D. 20,833E. 19,033
72. During the past year a company had total fixed costs of $70,000. Its product sold for $9 per unit. Variable costs during this time equaled $5 per unit. Next year the company is anticipating a 4% increase in total fixed costs and a $1 per unit decrease in variable costs but would like to maintain its current selling price per unit. How many units must the company sell next year to earn $1 million? (Round answer to complete units.)A. 119,200B. 200,000C. 214,560D. 268,200E. 18,200
73. Management of a company is evaluating two potential orders. Due to limited capacity only one of these orders can be accepted. Incremental fixed costs are the same for either option. Based on the information in the table below, which of the following statements is true?
Option A
Option B
Number of units
30
40
Contribution margin ratio
35%
45%
Selling price per unit
$400
$300
A. Option B has the highest contribution margin per unit.B. Option A has the highest total contribution margin.C. Option B has the lowest contribution margin ratio.D. Option B has the highest total contribution margin.E. Option A has the highest amount per dollar of sales to contribute to contribution margin and profit.
74. Total contribution margin in dollars divided by pretax income is the:A. Degree of operating leverage.B. Contribution margin ratio.C. Margin of safety.D. Sales mix.E. Break-even point in units.
75. A statistical method for deriving an estimated line of cost behavior is the:A. Scatter diagram method.B. High-low method.C. Composite method.D. CVP charting method.E. Least-squares regression method.
76. A graph used to analyze past cost behaviors by displaying costs and volume levels for each period as points on the diagram is called a:A. Least-squares diagram.B. Step-wise diagram.C. Scatter diagram.D. Break-even diagram.E. Composite diagram.
77. The least-squares regression method is:A. A graphical method to identify cost behavior.B. An algebraic method to identify cost behavior.C. A statistical method to identify cost behavior.D. The only identify cost estimation method allowed by GAAP.E. A cost estimation method that only uses the two extreme values.
78. A line on a scatter diagram that is intended to reflect the past relation between cost and volume is the:A. Margin of safety line. B. Break-even line.C. Contribution margin line.D. Estimated line of cost behavior.E. Standard cost line.
79. A method that estimates cost behavior by connecting the costs linked to the highest and lowest volume levels on a scatter diagram with a straight line is called the:A. Scatter method.B. High-low method.C. Least-squares method.D. Break-even method.E. Step-wise method.
Reference: 18_01
Willco Inc. manufactures electronic parts. They are analyzing their monthly maintenance costs to determine the best way to budget these costs in the future. They have collected the following data for the last six months:
Month
Machine Hours
Maintenance Costs
January
30,000
$62,000
February
40,000
$74,500
March
37,500
$65,900
April
39,000
$68,750
May
42,300
$74,000
June
35,000
$64,500
80. Using the high-low method and the Willco data, calculate the variable maintenance cost per machine hour (round to three decimal places).
A. $1.016/hr.
B. $0.976/hr.
C. $1.863/hr.
D. $1.250/hr.
E. $0.907/hr.
