Question :
129.Sleep Time produces mattresses. Each mattress has a variable cost : 1302674
129.Sleep Time produces mattresses. Each mattress has a variable cost of $260, fixed costs of $56,000 per month, and a unit selling price of $500. If the company produces and sells 400 mattresses in February, how much is the unit cost per mattress?
A.$260
B.$400
C.$240
D.$100
130.Triatt Resort has 200 rooms. Each room rents at $130 per night and variable costs total $42 per room per night of occupancy. The fixed costs total $18,700 per month. If 70% of the rooms are occupied each of the 30 nights in June, how much will total variable costs be for June?
A.$546,000
B.$369,600
C.$176,400
D.$252,000
131.Triatt Resort has 200 rooms. Each room rents at $130 per night and variable costs total $42 per room per night of occupancy. The fixed costs total $18,700 per month. If Triatt is able to increase occupancy from 70% to 80%, by how much will total costs increase per day during June?
A.$840
B.$2,710
C.$1,870
D.$1,760
132.Triatt Resort has 200 rooms. Each room rents at $130 per night and variable costs total $42 per room per night of occupancy. The fixed costs total $18,700 per month. If Triatt spends an additional $30,000 in June on advertising, it estimates it can expect an occupancy rate of 85%. What would be the financial impact of spending this additional money on advertising over an occupancy level of 70% during June?
A.Net income will increase by $49,200
B.Net income will increase by $7,800
C.Total fixed costs will decrease.
D.Total costs will increase by $1,260
133.A company purchases machinery costing $60,000 in October of 2014. Five years later, management discovers better, more efficient machine that could be purchased for $80,000 to replace the existing machine. Management has determined that they are able to sell the original machine for $15,000. In making the decision about buying the new machine, how much are total sunk costs?
A.$60,000
B.$80,000
C.$15,000
D.$20,000
134.Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3-month break follow:
(1)Work full time at a local accounting firm making $3,200 per month.
(2)Take a summer class which will cost $600 and work half time making $1,600 per month.
(3)Take two classes at a cost of $1,200 and not work at all during the summer.
Leah’s opportunity cost of taking two classes if she chooses option 3 over option 1 would be
A.$3,200 per month.
B.$2,000 per month.
C.$1,200 per month.
D.$1,600 per month.
135.Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3-month break follow:
(1)Work full time at a local accounting firm making $3,200 per month.
(2)Take a summer class which will cost $600 and work half time making $1,600 per month.
(3)Take two classes at a cost of $1,200 and not work at all during the summer.
Leah’s incremental revenue if she chooses option 1 over option 2 would be
A.$1,000 per month.
B.$2,200 per month.
C.$1,600 per month.
D.$1,000 per month.
136.Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3-month break follow:
(1)Work full time at a local accounting firm making $3,200 per month.
(2)Take a summer class which will cost $600 and work half time making $1,600 per month.
(3)Take two classes at a cost of $1,200 and not work at all during the summer.
Leah’s incremental profit or loss if she chooses option 2 over option 1 would be
A.($2,200) per month.
B.($1,600) per month.
C.($1,000) per month.
D.$1,000 per month.
137.Flash Eyes sells mascara. In June, it produced and sold 10,000 tubes of mascara. For the month, total variable costs were $21,000 and fixed costs totaled $24,000. In July, the company produced and sold 11,000 tubes of mascara. Which of the following statements is correct for July?
A.Total variable costs will be $21,000
B.Variable costs per unit will be $2.10
C.Variable costs per unit will be $4.50
D.Total fixed costs will be $26,400
138.Flash Eyes sells mascara. In June, it produced and sold 10,000 tubes of mascara. Total variable costs were $21,000 and fixed costs totaled $24,000. Which of the following statements is correct if, Flash Eyes produced and sold 9,000 units in July?
A.Fixed cost per unit will be $2.67
B.Total fixed costs will be $21,600
C.Variable costs in total will be $40,500
D.Variable costs per unit will be $2.33