Question : 158.During 2014, Waxley Corporation reported total revenues of $891,640 and : 1302734

 

 

158.During 2014, Waxley Corporation reported total revenues of $891,640 and profit of $91,486. Fixed costs were $332,043, and 44,582 units were sold. Costs and prices are expected to stay the same in 2015. Waxley expects to sell 50,000 units. How much is the company’s budgeted profit?

A.$142,957

B.$525,000

C.$667,957

D.$475,000

 

159.Anniston Gifts makes a product that sell for $40 per unit has and has a unit variable cost of $18. The contribution margin ratio is 55%. Annual fixed costs are $11,990. The company expects to sell 2,000 units this year. How much would profits increase by, if 140 more units are sold than expected?

A.$3,080

B.$47,080

C.$5,600

D.$545

 

160.Firms that have high operating leverage

A.have relatively high levels of fixed costs.

B.have production costs that are mostly variable.

C.will have smaller changes in profit when the activity level changes.

D.are generally thought to be less risky.

 

161.Total Fitness and Aerobic Town reported the following results for 2014:

 

Total FitnessAerobic Town

Sales              $5,000,000              $5,000,000

Variable costs              2,200,000              1,000,000

Fixed costs              1,000,000              2,200,000

 

Due to an economic downturn, it is estimated that sales for both companies will decrease next year by $300,000. Which company will have the larger percentage decrease in profit next year?

A.Neither; both companies will have the same profit.

B.Total Fitness will have a higher decrease in profit

C.Aerobic Town will have a higher decrease in profit.

D.There is not enough information provided to determine the answer.

 

162.Which of the following is a resource constraint?

A.Dollars of profit generated

B.Sales commissions

C.Cost per unit

D.Pounds of materials for production

 

163.When considering a process that involves a resource constraint, the optimal decision

A.minimizes the break-even point.

B.maximizes the contribution margin per unit of the constraint.

C.minimizes the contribution margin per unit of output.

D.minimizes total fixed costs.

 

164.Which of following will not be a part of the regression output from Excel?

A.A plot of the data

B.A measure of the R Square

C.The equation of the regression line

D.Total cost at all activity levels

165.Team Production produces two models of tailgating tents containing sports logos: NCAA and NFL. Information regarding these products for May follows:

NCAANFL

Number of units              3,000              7,000

Sales revenue              $120,000              $140,000

Variable costs              60,000              42,000

Fixed costs                 24,000                 50,000

Profit              $  36,000              $  48,000

Yards of canvas per tent2214

Contribution margin per unit              $20              $14

 

Due to increased demand of canvas in the market, Team Productions can obtain only 42,000 yards of canvas per month. The company can sell as many tents as it can produce of either model. How many NFL tents should the company produce in May considering the constraint?

A.0 NFL tents

B.3,000 NFL tents

C.1,909 NFL tents

D.1,500 NFL tents

 

166.Handson Yacht Rentals generated the following regression based on the number and cost of daily rentals of its yachts during May:

 

SUMMARY OUTPUT

Regression Statistics

Multiple R0.825358

R Square0.681216

Adj RSquare0.656695

Stand.Error39.35892

Observations          15

ANOVA

df              SS     MS        F       Sig F

Regression143,034.743,034.7127.7800170.000151

Residual1320,138.61,549.12

Total            14   63,173.3

 

LowerUpperLowerUpper

Coefficients  Std Error  t Stat    P-value     95%      95%      95%      95%

Intercept2621.21101.80732.626725 0.02091747.478460 487.361247.478460 487.3612

X Variable 1   35.58    6.1023  5.270675  0.000151 18.980154   45.3467 18.980154  45.3467

 

If Handson Yacht Rentals rents yachts 45 times during June, how much is its total cost for rentals?

A.$1,601

B.$4,222

C.$4,581

D.$63,173

 

167. Castillo Pens produces two models of titanium pens—Grande and Petite. Operations information appears below for the current year:

 

Grande   Petite

Units 2,5004,500

Sales revenue$160,000$96,000

Variable cost 64,00042,000

Fixed costs   40,000   16,000

Profit$ 56,000$ 38,000

Profit per pen$22.40$8.44

Contribution margin per pen$38.40$12.00

Ounces of titanium per pen8.502.50

 

Due to a supplier problem, only 1,400 pounds (22,400 ounces) of titanium will be available during each of the next few months. Each ounce of titanium costs $0.80. Castillo needs to produce at least 900 of each model to stay competitive and can sell all it produces. Given the limited resource, how many Petite’s should Castillo produce to maximize profits?

A.5,900 units

B.900 units

C.8,960 units

D.5,625 units