Question :
99.Barney & Robles plans to produce 50,000 books next year : 1302671
99.Barney & Robles plans to produce 50,000 books next year at a total cost of $1,900,000. The fixed costs total $120,000. Selling price per book is $65.00. Management is considering lowering the price to $62.00 per unit, and feels that this action will cause sales to climb to 54,000 books. What is the incremental revenue generated if 54,000 units are sold?
A.$44,400
B.$98,000
C.$3,348,000
D.$3,250,000
100.Hanover Binding plans to produce 40,000 books next year at a total cost of $1,640,000 with a selling price per book of $66.00. The fixed costs total $280,000. Management is considering lowering the price to $60.00 per book, and feels that this action will cause sales to climb to 50,000 books. What will be the incremental costs incurred if 50,000 books are sold?
A.$340,000
B.$20,000
C.$1,700,000
D.$1,300,000
101.Hanover Binding plans to produce 40,000 books next year at a total cost of $1,640,000 with a selling price per book of $66.00. The fixed costs total $280,000. Management is considering lowering the price to $60.00 per book, and feels that this action will cause sales to climb to 50,000 books. What is the amount of incremental profit if 50,000 books are sold?
A.$340,000 profit
B.$20,000 profit
C.$1,700,000 profit
D.$1,300,000 profit
102.Which of the following terms involves calculating the difference in revenue and the difference in cost between decision alternatives?
A.Budgeting production
B.Incremental analysis
C.Profit planning
D.Systems development
103.Which of the following statements regarding incremental analysis is true? Assume that there are no opportunity costs and that the capacity exists to complete any of the alternatives.
A.The preferred alternative will have revenues that are greater than the revenues of the other alternatives.
B.The preferred alternative will have expenses that are greater than the expenses of the other alternatives.
C.The preferred alternative will have fixed expenses that are less than the fixed expenses of the other alternatives.
D.The preferred alternative will have profits that are greater than the profits of the other alternatives.
104.Which one of the following will most likely influence the actions of managers?
A.Sunk costs
B.Performance measures
C.Noncontrollable costs
D.GAAP
105.Which of the following is not a reasonable measure of a plant manager’s performance?
A.Net income
B.Cost of insurance for the plant
C.Number of orders delivered on time
D.Change in market share
106.“You get what you measure!” refers to the relationship between
A.managerial accounting and financial accounting.
B.ethical and unethical behavior.
C.duties of the CEO and duties of the controller.
D.performance measures and actions of managers.
107.If management informs employees that bonuses will depend solely on improving the gross profit ratio (gross profit/sales), which of the following behaviors would most likely be observed?
A.Sales people would quit trying to sell high volume, low margin core products
B.Overall sales would fall
C.Overall gross profit would fall
D.All of these answer choices are correct
108.Which of the following statements regarding performance measures is true?
A.GAAP requires performance measures for all employees.
B.Companies must select from performance measures published by its own industry when deciding how they want to assess performance.
C.Employees tend to direct their attention to what is measured and may neglect what is not measured.
D.Companies need to place emphasis on a single performance measure so employees know what to expect.
