Question 1 (1 point)
Thomas Train has collected the following information over the last six months.
|Month||Units produced||Total costs|
Using the high-low method, what is the variable cost per unit?
Question 2 (1 point)
Rooter’s Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:
|Number of rooms cleaned||250||160||200||150||270||170||260|
How much are estimated monthly variable costs using the high-low method?
Question 3 (1 point)
A cost is $3,600 at 1,000 units, $7,000 at 2,000 units, and $9,200 at 3,000 units. This cost is a
Question 4 (1 point)
Winny’s Office Furniture has a contribution margin ratio of 16%. If fixed costs are $192,800, how many dollars of revenue must the company generate in order to reach the break-even point?
Question 5 (1 point)
Tim Taylor has written a self improvement book that has the following cost characteristics:
|Selling Price||$16.00 per book|
|Variable cost per unit:|
|Selling & administrative||2.00|
|Production||$97,600 per year|
|Selling & administrative||19,200 per year|
How many units must be sold to break-even?
Question 6 (1 point)
The use of fixed cost to increase profits at a rate faster than sales increase is called:
Question 7 (1 point)
Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $90, unit variable cost is $45, and the fixed costs per month are $5,000. The margin of safety is:
Question 8 (1 point)
Which of the following statements about the relevant range is true?