Chaper 8 Quiz

Chaper 8 Quiz - Quiz Questions for Chapter 8 Use the...

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Quiz Questions for Chapter 8 Use the following information to answer the next two questions: National’s cost accountant prepared the following static budget based on expected activity of 2,000 units for the 2008 accounting period: Sales Revenue $64,000 Variable Costs (34,000) Contribution Margin 30,000 Fixed Costs (18,000) Net Income $12,000 1. If National actually produced 1,500 units, the flexible budget would show variable costs of a. $34,000. b. $22,666. c. $30,000. d. $25,500. 2. If National actually produced 2,200 units, the flexible budget would show fixed costs amounting to a. $19,800. b. $18,000. c. $52,000. d. none of the above. Use the following information to answer the next two questions: Cox Manufacturing Company prepared the following static budget income statement for 2008: Sales Revenue $125,000 Variable Costs (75,000) Contribution Margin 50,000 Fixed Cost (30,000) Net Income $ 20,000 The budget was based on an expected sales volume of 5,000 units. Actual sales volume was 6,000 units. 3.
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This note was uploaded on 05/10/2008 for the course ECO 330 taught by Professor Olay during the Spring '08 term at SUNY Albany.

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Chaper 8 Quiz - Quiz Questions for Chapter 8 Use the...

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