Chapter 03 - Quiz

Chapter 03 - Quiz - Accounting 245 Cost Accounting Chapter...

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Accounting 245 – Cost Accounting Chapter 3 Quiz - 10 points Name: _______________________________________ True/False Questions 1. Johnson Company sells a single product for $125. The variable expense per unit is $80 and the fixed expense per unit is $30 at the current level of sales. The company's net operating income will increase by $45 if one more unit is sold. T / F 2. Fawn Company's margin of safety is $90,000. If the company's sales drop by $80,000, it will still have positive net operating income. T / F 3. Contribution margin is defined as sales less fixed costs. T / F Multiple Choice Questions Questions 4-5 are based on the following data. Tee Times, Inc. produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2004 for its Elite Quality golf club sets: Revenues (400 sets sold @ $600 per set) $240,000 Variable costs 160,000 Fixed costs 50,000 4. How many sets of clubs must be sold for Tee Times, Inc. to reach their breakeven point?
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This note was uploaded on 11/24/2010 for the course ACCT 245 taught by Professor B during the Spring '10 term at Oakton.

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Chapter 03 - Quiz - Accounting 245 Cost Accounting Chapter...

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