Saint Leo ACC 202 Chapter 20 Test - 1 Galose Coffee Company sold 7,000 units in October at a sales price of \$45 per unit The variable cost is \$20 per

# Saint Leo ACC 202 Chapter 20 Test - 1 Galose Coffee...

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1.Galose Coffee Company sold 7,000 units in October at a sales price of \$45 per unit. The variable cost is \$20 per unit. The monthly fixed costs are \$8,000. What is the operating income earned in October? A.\$315,000B.\$175,000C.\$167,000Your answer is correct.D.\$140,0002.Fixed costs per unit decrease as production levels decrease.TrueAnswer: False3.Arturo Company sells two Generators Model A and Model B—for \$454 and \$396, respectively. The variable cost of Model A is \$408 and of Model B is \$314. If Arturo Company's sales incentives reward sales of the goods with the highest contribution margin, the sales force will be motivated to push sales of Model A more aggressively than Model B.TrueAnswer: False4.Browning Company sells two Products X and Y. Product X is sold for \$30 per unit and has a variable cost per unit of \$15. Product Y is sold for \$30 per unit and has a variable cost of \$10 per unit. Total fixed costs for the company are \$20,000. Browning Company typically sells three units of Product X for every unit of Product Y. What is the breakeven point in total units? (Round any intermediate calculations to two decimal places, and your answer to the nearest unit.)

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