# Assingnment

#### Question 1 (1 point)

Thomas Train has collected the following information over the last six months.

 Month Units produced Total costs March 10,000 \$25,600 April 12,000 26,200 May 20,000 27,600 June 13,000 26,450 July 12,000 26,000 August 15,000 26,500

Using the high-low method, what is the variable cost per unit?

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#### 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:

 January February March April May June July Number of rooms cleaned 250 160 200 150 270 170 260 Cleaning cost \$6,450 \$4,060 \$5,100 \$4,100 \$6,640 \$4,200 \$6,530

How much are estimated monthly variable costs using the high-low method?

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#### 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 3 options:

 mixed cost step cost variable cost fixed cost

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#### 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?

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#### 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: Production \$4.00 Selling & administrative 2.00 Fixed costs: Production \$97,600 per year Selling & administrative 19,200 per year

How many units must be sold to break-even?

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#### Question 6 (1 point)

The use of fixed cost to increase profits at a rate faster than sales increase is called:

Question 6 options:

 “What if “ analysis C-V-P analysis operating leverage contribution margin approach

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#### 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:

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#### Question 8 (1 point)

Which of the following statements about the relevant range is true?

Question 8 options:

 Cost functions outside the relevant range are usually linear The relevant range is the normal length of time in a company’s accounting period Estimates outside the relevant range are useful Cost functions within the relevant range are assumed to be linear