ACCT 102 CH 5 & 6

The following information is available for a company’s maintenance cost over the last seven months.
 

Using the high-low method, the variable component of its maintenance cost is:

• $30.00 per unit.

• $25.00 per unit.

• $22.50 per unit.

• $16.11 per unit.

• $22.00 per unit.

A jeans maker is designing a new line of jeans. These jeans will sell for $410 per unit and cost $328 per unit in variable costs to make. Fixed costs total $120,000. Contribution margin per unit is:

• 52

• 62

• 72

• 82

• 92

A jeans maker is designing a new line of jeans. These jeans will sell for $410 per unit and cost $328 per unit in variable costs to make. Fixed costs total $120,000. The contribution margin ratio is:

• 20%.

• 25%.

• 80%.

• 75%

• 125%.

A jeans maker is designing a new line of jeans. These jeans will sell for $410 per unit and cost $328 per unit in variable costs to make. Fixed costs total $120,000. If 5,000 units are produced and sold, income equals:

• $2,050,000.

• $1,930,000.

• $290,000.

• $410,000.

• $1,520,000.

Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income?

• $245,000

• $207,500

• $37,300

• $170,000

• $39,200

During its most recent fiscal year, Raphael Enterprises sold 200,000 electric screwdrivers at a price of $15 each. Fixed costs amounted to $400,000 and income was $600,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

• $2,400,000.

• $1,600,000.

• $3,000,000.

• $2,000,000.

• $1,000,000.

A company has fixed costs of $320,000 and a contribution margin per unit of $15. If the company wants to earn income of $40,000, how many units must be sold?

• 24,000.

• 21,333.

• 18,666.

• 2,667.

• 20,000.

A firm expects to sell 25,000 units of its product at $11 per unit. Income is predicted to be $60,000. If the variable costs per unit are $5, total fixed costs must be:

• $65,000.

• $90,000.

• $125,000.

• $215,000.

• $275,000.

During its first year of operations, the McCormick Company incurred the following manufacturing costs:
 

Direct materials $ 6 per unit Direct labor $ 3 per unit Variable overhead $ 5 per unit Fixed overhead $ 296,000 per year

The company produced 37,000 units, and sold 29,000 units, leaving 8,000 units in inventory at year-end. What is the value of ending inventory under absorption costing?

• $112,000

• $64,000

• $176,000

• $296,000

• $408,000

A company reports the following information for its first year of operations:
 

If the company's cost per unit of finished goods using absorption costing is $27, how many units were produced?

• 4,000 units.

• 3,600 units.

• 1,846 units.

• 2,667 units.

• 2,000 units.