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

 

 

 

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