{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Exam 2, Fall, 06-1 - 1 In the formula Y = a bX variable...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1. In the formula Y = a + bX, variable rate refers to the A) dependent variable. B) slope parameter or b. C) independent variable. D) intercept parameter or a. 2. Which of the following is a weakness of the high-low method? 3. More accurate product costing information is produced by assigning costs using 4. The following information pertains to Kangas Company: Selling price per unit $250 Variable manufacturing costs per unit $75 Fixed manufacturing costs per unit $90 Variable selling costs per unit $45 Fixed selling costs per unit $20 Expected production and sales 2,000 units Assuming the expected sales are achieved, what is the degree of operating leverage for Kangas Company? Version 1 Page 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
5. Mason Enterprises has prepared the following budget for the month of July: S e l l i n g V a r i a b l e U n i t p r i c e p e r u n i t c o s t p e r u n i t s a l e s P r o d u c t A . . . . . . . . . . . . . . $ 1 0 . 0 0 $ 4 . 0 0 1 5 , 0 0 0 P r o d u c t B . . . . . . . . . . . . . . . $ 1 5 . 0 0 $ 8 . 0 0 2 0 , 0 0 0 P r o d u c t C . . . . . . . . . . . . . . . $ 1 8 . 0 0 $ 9 . 0 0 5 , 0 0 0 Assuming that total fixed expenses will be $150,000 and the sales mix remains constant, the break- even point would be closest to: A) $276,008 B) $235,292 C) $294,545 D) $141,278 6. Break-even is the point where A) revenue equals cost of goods sold. B) revenue equals total variable costs plus total fixed costs. C) revenue equals total manufacturing costs. D) revenue equals total variable costs. 7. The following information is provided: Sales price per unit $70 Variable cost per unit $45 Fixed costs $50,000 Expected sales 5,000 units The margin of safety is (Hint: Calculate the margin of safety in dollars; then convert to units.) Version 1 Page 2
Image of page 2
8. Sales $540,000 Variable costs $378,000 Fixed costs $120,000 Expected production and sales in units 40,000 units Sales in dollars necessary to generate net operating income of $30,000 would be
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern