Question 10 out of 10 pointsWillco Inc. manufactures electronic parts. They are analyzing their monthly maintenance costs to determine the best way to budget these costs in the future. They have collected the following data for the last six months:Using the high-low method and the Willco data, calculate the variable maintenance cost per machine hour (round to three decimal places). Selected Answer:$1.863/hr.Answers:$1.016/hr.$0.976/hr.$1.863/hr.$1.250/hr.$0.907/hr.Response Feedback:($74,000 - 62,000)/(42,300 - 30,000 hrs.) = $.976/hr. Question 2 10 out of 10 points Total contribution margin in dollars divided by pretax income is the:
Response Feedback: correct Question 3 0 out of 10 points Break-even analysis cannot be applied in a multiproduct situation. Response Feedback: incorrect Question 4 0 out of 10 points As the level of output activity increases, fixed cost per unit remains constant. Response Feedback: incorrect Question 5 10 out of 10 points A special case of cost-volume-profit analysis is: Selected Answer:Answers:Least-squares point.Step-wise point.Composite margin point.
Break-even point. Cost point. Response Feedback: correct Question 60 out of 10 pointsThomas Company has total fixed costs of $360,000 and variable costs of $14 per unit. If the unit sales price is reduced from $24 to $20 and advertising is increased by $10,000, sales will increase from 40,000 to 65,000 units.What are the contribution margin and net income under the current conditions? Question 7 0 out of 10 points A cost that can be separated into fixed and variable components is called a:
Response Feedback: incorrect Question 810 out of 10 pointsA method that estimates cost behavior by connecting the costs linked to the highest and lowest volume levels on a scatter diagram with a straight line is called the: Response Feedback: correct
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- Contribution Margin, Breakeven point, Willco Inc.