{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Exam 2, Fall, 06-1

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

• Test Prep
• BarristerStrawWallaby1299
• 12
• 100% (3) 3 out of 3 people found this document helpful

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

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

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

View Full Document
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
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

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• 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.

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

• 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.

Dana University of Pennsylvania ‘17, Course Hero Intern

• 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.

Jill Tulane University ‘16, Course Hero Intern