Question : 80.Operating income will be __________ when there zero beginning inventory : 1258581

 

80.Operating income will be __________ when there is zero beginning inventory and all inventory units produced are sold.    

A. lower under variable costing than absorption costing

B. the same under both variable and absorption costing

C. higher under variable costing than absorption costing

D. higher than gross margin under variable costing

81.Assume a company sells a given product for $70 per unit. How many units must be sold to break-even if variable selling costs are $10 per unit, variable production costs are $22 per unit, and total fixed costs are $427,500?    

A. 11,250 units.

B. 13,359 units.

C. 8,906 units.

D. 7,125 units.

E. 6,107 units.

82.Assume a company sells a given product for $90 per unit. How many units must be sold to break even if variable selling costs are $2 per unit, variable production costs are $31 per unit, and total fixed costs are $1,799,946?   

A. 31,578 units.

B. 19,995 units.

C. 20,454 units.

D. 14,634 units.

E. 899,973 units.

83.Assume a company sells a given product for $12 per unit. How many units must be sold to break even if variable selling costs are $0.50 per unit, variable production costs are $3.50 per unit, and total fixed costs are $4,500,000?   

A. 391,305 units.

B. 562,500 units.

C. 529,412 units.

D. 281,250 units.

E. 375,000 units.

84.Sales mix decisions should be made using variable costing because:   

A. Sales mix decisions usually focus on fixed costs

B. Fixed costs will not affect operating income in the long-term

C. Companies should emphasize products with the highest contribution margins if they want to increase profits

D. All costs, including variable and fixed costs, are controllable in the long-term

85.Shore Company reports the following information regarding its production cost. 

Units produced28,000 units

Direct labor$23 per unit

Direct materials$24 per unit

Variable overhead$280,000 in total

Fixed overhead$94,920 in total

Compute production cost per unit under absorption costing.    

A. $57.00

B. $60.39

C. $47.00

D. $23.00

E. $24.00

86.Urban Company reports the following information regarding its production cost: 

Units produced20,000 units

Direct labor$13 per unit

Direct materials$18 per unit

Variable overhead$220,000 per unit

Fixed overhead$110,000 in total

Compute production cost per unit under variable costing.  A. $18.00

B. $36.50

C. $42.00

D. $13.00

E. $31.00

87.Hayes Inc. provided the following information for the year 2015: 

Beginning inventory100 units

Units produced750 units

Units sold        800 units

Selling price$150/unit

Direct materials$35/unit

Direct labor$16/unit

Variable manufacturing overhead$15/unit

Fixed manufacturing overhead$24,000/yr

Variable selling/administrative costs$8/unit

Fixed selling/administrative costs$15,500/yr

What is the unit product cost for the year using absorption costing?  A. $98

B. $66

C. $74

D. $96

88.Hayes Inc. provided the following information for the year 2015: 

Beginning inventory100 units

Units produced750 units

Units sold        800 units

Selling price$150/unit

Direct materials$35/unit

Direct labor$16/unit

Variable manufacturing overhead$15/unit

Fixed manufacturing overhead$24,000/yr

Variable selling/administrative costs$8/unit

Fixed selling/administrative costs$15,500/yr

What is the unit product cost for the year using variable costing?    

A. $98

B. $66

C. $74

D. $96

89.Sea Company reports the following information regarding its production cost. 

Units produced42,000 units

Direct labor$35 per unit

Direct materials$28 per unit

Variable overhead$17 per unit

Fixed overhead$105,000 in total

Compute production cost per unit under variable costing.  A. $28.00

B. $82.50

C. $80.00

D. $63.00

E. $35.00