Question :
128.Charlie Shine has written a self-improvement book. The following its : 1302731
128.Charlie Shine has written a self-improvement book. The following are its pricing and cost details:
Selling price $18.00 per book
Variable cost per unit:
Production $3.50
Selling & administrative 1.90
Fixed costs:
Production $33,600 per year
Selling & administrative 15,540 per year
What is the cost formula for this operation, where TC = Total cost and x = units sold?
A.TC = 12.60x – 49,140
B.TC = 6x + 49,140
C.TC = 5.40x – 49,140
D.TC = 5.40x + 49,140
129.Charlie Shine has written a self-improvement book. The following are its pricing and cost details:
Selling price $18.00 per book
Variable cost per unit:
Production $3.50
Selling & administrative 1.90
Fixed costs:
Production $33,600 per year
Selling & administrative 15,540 per year
Charlie Shine is currently selling 5,200 books per year. What impact would a 22% increase in sales have on profit?
A.Profit would increase by 22%.
B.Profit would increase by 100%.
C.Profit would increase by $20,592.
D.Profit would increase by $14,414.
130.Charlie Shine has written a self-improvement book. The following are its pricing and cost details:
Selling price $18.00 per book
Variable cost per unit:
Production $3.50
Selling & administrative 1.90
Fixed costs:
Production $33,600 per year
Selling & administrative 15,540 per year
Assume the variable production cost and the selling price were each increased by $0.30 per book. Which of the following would change?
A.Contribution margin ratio
B.Contribution margin per unit
C.Break-even point in units
D.Total fixed costs
131.Talk Time Cellular sells smart phones for $150. The unit variable cost per phone is $25 plus a selling commission of 10%. Fixed manufacturing costs total $5,600 per month, while fixed selling and administrative costs total $2,100. What is the contribution margin per phone?
A.$125
B.$110
C.$50
D.There is not enough information provided to determine the answer.
132.Talk Time Cellular sells smart phones for $150. The unit variable cost per phone is $25 plus a selling commission of 10%. Fixed manufacturing costs total $5,600 per month, while fixed selling and administrative costs total $2,100. How many phones must be sold to avoid a loss on the company’s income statement?
A.62 phones
B.51 phones
C.70 phones
D.45 phones
133.Talk Time Cellular sells smart phones for $150. The unit variable cost per phone is $25 plus a selling commission of 10%. Fixed manufacturing costs total $5,600 per month, while fixed selling and administrative costs total $2,100. Talk Time expects sales of $12,300 during next year. How much is the margin of safety estimated for next year?
A.$82
B.$10,500
C.$1,320
D.$1,800
134.Bunch of Books, a producer of children’s books, has provided the following information:
Selling price per unit $6.60
Contribution margin per unit $3.00
Total fixed costs $46,200
What is the break-even point in books?
A.20,790 books
B.15,400 books
C.12,833 books
D.7,000 books
135.Brewster Café has estimated that fixed costs per month are $114,840 and variable cost per dollar of sales is 42%. Sales during June totaled $220,000. What is the break-even point per month in sales?
A.$273,429
B.$198,000
C.$22,000
D.None of these answer choices are correct.
136.Brewster Café has estimated that fixed costs per month are $114,840 and variable cost per dollar of sales is 42%. Sales during June totaled $220,000. What level of sales is needed for a monthly profit of $31,900?
A.$253,000
B.$198,000
C.$239,140
D.$349,381
137.Brewster Café has estimated that fixed costs per month are $114,840 and variable cost per dollar of sales is 42%. For the month of July, the cafe anticipates sales of $300,000. What is the expected level of profit?
A.$126,000
B.$59,160
C.$174,000
D.$11,160
