Question :
161. Rusty Co. sells two products, X and Y. Last : 1251593
161. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s. Related data are:
Unit Selling PriceUnit VariableUnit contribution
ProductPriceCostMargin
X$110.00$70.00$40.00
Y70.0050.00$20.00
Assuming that last year’s fixed costs totaled $675,000. What was Rusty Co.’s break-even point in units? A. 16,875 unitsB. 30,100 unitsC. 30,000 unitsD. 11,250 units
162. If sales are $400,000, variable costs are 75% of sales, and operating income is $50,000, what is the operating leverage? A. 2.5B. 7.5C. 2.0D. 0
163. Which of the following is not an assumption underlying cost-volume-profit analysis? A. The break-even point will be passed during the period.B. Total sales and total costs can be represented by straight lines.C. Costs can be accurately divided into fixed and variable components.D. The sales mix is constant.
164. When units manufactured exceed units sold: A. variable costing income equals absorption costing incomeB. variable costing income is less than absorption costing incomeC. variable costing income is greater than absorption costing incomeD. variable costing income is greater by the number of units produced multiplied by the variable cost ratio.
165. Harold Corporation just started business in January 2012. They had no beginning inventories. During 2012 they manufactured 12,000 units of product, and sold 10,000 units. The selling price of each unit was $20. Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $2 per unit. Fixed manufacturing costs were $24,000 and fixed selling and administrative costs were $6,000. What would be the Harold Corporation’s net income for 2012 using absorption costing? A. $114,000B. $110,000C. $4,000D. $106,000
166. Harold Corporation just started business in January 2012. They had no beginning inventories. During 2012 they manufactured 12,000 units of product, and sold 10,000 units. The selling price of each unit was $20. Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $2 per unit. Fixed manufacturing costs were $24,000 and fixed selling and administrative costs were $6,000. What would be the Harold Corporation’s net income for 2012 using variable costing? A. $114,000B. $110,000C. $4,000D. $106,000
167. Harold Corporation just started business in January 2012. They had no beginning inventories. During 2012 they manufactured 12,000 units of product, and sold 10,000 units. The selling price of each unit was $20. Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $2 per unit. Fixed manufacturing costs were $24,000 and fixed selling and administrative costs were $6,000. What would be the difference in Harold Corporation’s net income for 2012 if they used variable costing instead of absorption costing? A. No differenceB. $2,000 greaterC. $4,000 lessD. $6,000 less
168. Given the following cost data, what type of cost is shown?
Total Cost# of units
$5001
$1,0002
$1,5003
$2,0004
A. mixed costB. variable costC. fixed costD. none of the above
169. Given the following cost data, what type of cost is shown?
Cost per unit# of units
$5,0001
$2,5002
$1,6673
$1,2504
A. mixed costB. variable costC. fixed cost D. none of the above
170. Given the following cost data, what type of cost is shown?
Total Cost# of Units
$3,5001
$4,0002
$4,5003
$5,0004
A. mixed costB. variable costC. fixed cost D. none of the above
