Question : 51. Speedy CouriersSpeedy Couriers documented the miles driven and total vehicle : 1291701

 

51. Speedy CouriersSpeedy Couriers documented the miles driven and total vehicle costs for the past five months as follows: 

 

Number of miles

Total vehicle costs

January

1,600

$3,600

February

2,000

  4,600

March

1,500

  3,450

April

1,800

  3,900

May

2,200

  4,500

 

 

 

Refer to the Speedy Couriers information above. Using the high/low method, what is the cost equation to predict total vehicle costs? A. Y = $985 + $1.64xB. Y = $4,500 + $2.05xC. Y = $560 + $2.30xD. Y = $1,200 + $1.50x

 

52. Speedy CouriersSpeedy Couriers documented the miles driven and total vehicle costs for the past five months as follows: 

 

Number of miles

Total vehicle costs

January

1,600

$3,600

February

2,000

  4,600

March

1,500

  3,450

April

1,800

  3,900

May

2,200

  4,500

 

 

 

Refer to the Speedy Couriers information above. Using the high/low method, if Speedy expects to drive 1,750 miles in June, what will be expected total vehicle costs? A. $3,825.00B. $4,585.00C. $8,087.50D. $3,855.00

 

53. Denver ManufacturingDenver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows: 

 

Number ofunits produced

Totalmaintenance costs

January

5,400

$4,800

February

6,600

  5,180

March

4,900

  4,500

April

5,600

  4,900

May

6,000

  5,490

 

 

 

Refer to the Denver Manufacturing information above. Using the high/low method, what is the cost equation to predict total maintenance costs? A. Y = $90 + $.90xB. Y = $2,540 + $.40xC. Y = $1,646 + $.5824xD. Y = $2.50x – $11,320

 

54. Denver ManufacturingDenver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows: 

 

Number ofunits produced

Totalmaintenance costs

January

5,400

$4,800

February

6,600

  5,180

March

4,900

  4,500

April

5,600

  4,900

May

6,000

  5,490

 

 

 

Refer to the Denver Manufacturing information above. Using the high/low method, if Denver expects to produce 5,000 units in June, what will be budgeted total maintenance costs? A. $4,590B. $4,558C. $4,540D. $4,363

 

55. When comparing a “pre-tax cost” and an “after-tax cost”, which of the following is true? A. The after-tax cost will be greater than the pretax cost.B. They will be the same amount.C. The pre-tax cost will be greater than the after-tax cost.D. The higher the tax rate, the lower the difference in the amount between them.

 

56. The after-tax benefit of a taxable cash receipt can be calculated as follows: A. After-tax benefit = Pretax receipt ´ tax rateB. After-tax benefit = Pretax receipt ´ (1 – tax rate)C. After-tax benefit = Pretax receipt ´ (1 + tax rate)D. After-tax benefit = Pretax receipt ¸ tax rate

 

57. After-tax income can be calculated as follows: A. After-tax income = Pretax income ´ tax rateB. After-tax income = Pretax income ¸ (1 – tax rate)C. After-tax income = Pretax income ´ (1 + tax rate)D. After-tax income = Pretax income ´ (1 – tax rate)

 

58. The manager of a company is considering a special project that will increase sales revenue by $27,500 without affecting costs. If the company has a tax rate of 40%, what will be the after-tax income? A. $16,500B. $11,000C. $27,500D. $38,500

 

59. Blossom Products is considering a special project that will increase sales revenue by $127,000 without affecting costs. If the company has a tax rate of 40%, what will be the after-tax income? A. $  50,800B. $  76,200C. $127,000D. $203,200

 

60. Putnam Distributors is contemplating whether or not to accept a special order. Putnam wishes to have after-tax cash receipts of $54,000 if they accept the order. If Putnam has a tax rate of 40%, what is the price the customer should be charged for their order? A. $32,400B. $21,600C. $90,000D. $54,000