Question :
101. What the Red and White’s contribution margin for this : 1256603
101. What is the Red and White’s contribution margin for this month if 980 units were sold?A. $38,000B. $18,620C. $24,500D. $50,000E. $21,560
102. What is Red and White’s net income under absorption costing if 980 units are sold and operating expenses are $12,000?
A. $(1,380)
B. $(2,000)
C. $ 2,700
D. $ 6,620
E. $ 10,620
103. What is Red and White’s net income under variable costing if 980 units are sold and operating expenses are $12,000?
A. $(1,380)
B. $(2,000)
C. $ 2,700
D. $ 6,620
E. $ 10,620
104. Decko Industries reported the following monthly data:
Units produced
52,000 units
Sales price
$33 per unit
Direct materials
$1.50 per unit
Direct labor
$2.50 per unit
Variable overhead
$3.50 per unit
Fixed overhead
$234,000 in total
What is the company’s contribution margin for this month if 50,000 units were sold?A. $1,326,000B. $1,716,000C. $1,275,000D. $1,650,000E. $1,450,000
105. Assume that the following information was available for Guy Brown Company. How would Maria Teresa Vazquez and the other owners evaluate this information based on contribution margin ratio?
Recycled Toner Cartridges
Office Supplies
Furniture
Sales
$500,000
$700,000
$900,000
Variable expenses
Variable production
$50,000
$140,000
$270,000
Variable advertising
$5,000
$14,000
$36,000
Variable shipping
$10,000
$28,000
$72,000
A. Recycled toner cartridges has the lowest contribution margin ratio.B. Furniture has the highest contribution margin ratio.C. Office supplies has the highest contribution margin ratio.D. Recycled toner cartridges has the highest contribution margin ratio.E. Based on contribution margin ratio, the owners should consider expanding the furniture line and scaling back on office supplies and recycled toner cartridges.
106. Assume that the following information was available for Daylight Enterprises, Inc. Which of the following statements is(are) true with regard to contribution margin ratio?
Ceiling Lights
Tabletop Lights
Stand-Alone Lights
Sales
$350,000
$175,000
$440,000
Variable expenses
Variable production
$70,000
$19,250
$90,000
Variable advertising
$10,500
$3,500
$22,000
Variable shipping
$12,000
$14,000
$28,000
A. Tabletop lights has the lowest contribution margin ratio.B. Ceiling lights has the highest contribution margin ratio.C. Ceiling lights has the lowest contribution margin ratio.D. Stand-alone lights has the highest contribution margin ratio.E. Tabletop lights has the highest contribution margin ratio.
107. Wind Fall, a manufacturer of leaf blowers, began operations this year. During this year, the company produced 10,000 leaf blowers and sold 8,500. At year-end the company reported the following income statement using absorption costing:
Sales (8,500 x $45)
$382,500
Cost of goods sold (8,500 x $20)
170,000
Gross margin
$212,500
Selling and administrative expenses
60,000
Net income
$152,500
Production costs per leaf blower total $20, which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced). Fifteen percent of total selling and administrative expenses are variable.Compute net income under variable costing.A. $146,500B. $158,500C. $237,500D. $206,500E. $246,500
108. Aces, Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. At year-end, the company reported the following income statement using absorption costing.
Sales (4,900 x $90)
$441,000
Cost of goods sold (4,900 x $38)
186,200
Gross margin
$254,800
Selling and administrative expenses
75,000
Net Income
$179,800
Production costs per tennis racket total $38, which consists of $25 in variable production costs and $13 in fixed production costs (based on the 6,000 units produced). Ten percent of total selling and administrative expenses are variable. Compute net income under variable costing.A. $194,100B. $165,500C. $311,000D. $240,500E. $233,000
109. Dent Corporation had net income of $182,000 based on variable costing. Beginning and ending inventories were 5,000 units and 8,000 units, respectively. Assume the fixed overhead per unit was $3 for both the beginning and ending inventory. What is net income under absorption costing?A. $173,000B. $221,000C. $191,000D. $143,000E. $185,000
110. Fomtech, Inc. had net income of $750,000 based on variable costing. Beginning and ending inventories were 50,000 units and 48,000 units, respectively. Assume the fixed overhead per unit was $.75 for both the beginning and ending inventory. What is net income under absorption costing?A. $751,500B. $676,500C. $823,500D. $748,500E. $750,000
