Question :
109.ProLight plans to sell 1,600 white lights that enhance indoor : 1302672
109.ProLight plans to sell 1,600 white lights that enhance indoor plant growth next year with total budgeted sales of $48,000 and estimated profit of $8,000. Variable costs are projected to be $17.50 per unit. Customer A offers to pay $10,000 to buy 400 lights from ProLight. Total fixed costs are $12,000 per year. This offer does not affect ProLight’s other planned operations. How much is the incremental revenue associated with the offer from Customer A?
A.$58,000
B.$10,000
C.$48,000
D.$3,000
110.ProLight plans to sell 1,600 white lights that enhance indoor plant growth next year with total budgeted sales of $48,000 and estimated profit of $8,000. Variable costs are projected to be $17.50 per unit. Customer A offers to pay $10,000 to buy 400 lights from ProLight. Total fixed costs are $12,000 per year. This offer does not affect ProLight’s other planned operations. What is the incremental cost associated with the offer from Customer A?
A.$58,000
B.$10,000
C.$48,000
D.$7,000
111.ProLight plans to sell 1,600 white lights that enhance indoor plant growth next year with total budgeted sales of $48,000 and estimated profit of $8,000. Variable costs are projected to be $17.50 per unit. Customer A offers to pay $10,000 to buy 400 lights from ProLight. Total fixed costs are $12,000 per year. This offer does not affect ProLight’s other planned operations. How much is incremental profit associated with the offer from Customer A?
A.$3,000
B.$10,000
C.$48,000
D.$7,000
112.Good Buy Electronics has been offered $21,600 to produce 12,000 external hard drives for a customer. Good Buy has budgeted sales of 200,000 hard drives totaling $500,000, with fixed costs of $260,000 and total costs of $420,000. Assuming that Good Buy has the capacity to produce the additional units and that accepting this order will not affect any other orders, what effect will accepting the order have on Good Buy’s profit?
A.Incremental profit will increase by $21,600
B.Incremental profit will decrease by $9,600
C.Incremental profit will increase by $12,000
D.Incremental profit will decrease by $3,600
113.Classic Loungers is in the process of preparing a production cost budget for August. Actual costs in July for 200 chaise lounge chairs were:
Materials cost $ 6,000
Labor cost 8,000
Rent 2,000
Depreciation 4,000
Other fixed costs 5,000
Total $25,000
Each chair is sold for $140 in July. The company plans to lower the selling price to $130 per chair at which management estimates that sales will increase to 230 chairs. Materials and labor are the only variable costs. How much is the incremental cost of producing an extra 30 chairs?
A.$1,900
B.$2,100
C.$3,750
D.$(200)
114.Classic Loungers is in the process of preparing a production cost budget for August. Actual costs in July for 200 chaise lounge chairs were:
Materials cost $ 6,000
Labor cost 8,000
Rent 2,000
Depreciation 4,000
Other fixed costs 5,000
Total $25,000
Each chair is sold for $140 in July. The company plans to lower the selling price to $130 per chair at which management estimates that sales will increase to 230 chairs. Materials and labor are the only variable costs. How much is the incremental revenue associated with the price reduction?
A.$200
B.$2,100
C.$3,750
D.$1,900
115.Classic Loungers is in the process of preparing a production cost budget for August. Actual costs in July for 200 chaise lounge chairs were:
Materials cost $ 6,000
Labor cost 8,000
Rent 2,000
Depreciation 4,000
Other fixed costs 5,000
Total $25,000
Each chair is sold for $140 in July. The company plans to lower the selling price to $130 per chair at which management estimates that sales will increase to 230 chairs. Materials and labor are the only variable costs. Under what situation should the company lower the price of its chaise lounge chairs?
A.If total revenue exceeds totals costs under the new pricing
B.If incremental revenue exceeds the old revenue
C.If incremental profit is a positive number
D.If incremental costs decrease
116.Which of the following is true concerning Enterprise Resource Planning (ERP) systems?
A.They grew out of the material requirements planning systems that preceded them.
B.They will allow customers to track their orders.
C.They are considered sunk costs.
D.All of these answer choices are correct.
117.Which of the following would most likely be a Customer Relationship Management System component?
A.A system allowing customers to do online banking.
B.A system that prepares a master production schedule.
C.A system that links the company’s suppliers electronically to its databases.
D.A system that manages human resources.
118.Supply Chain Management (SCM) systems
A.computerize inventory control and production planning.
B.organize activities between a company and its suppliers.
C.automate customer service and support.
D.allow customers to track their purchase as it is being produced.
