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A100_Mgl_2_solutions

# A100_Mgl_2_solutions - Fixed versus variable costs Several...

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Fixed versus variable costs Several scenarios are described below. For each one, determine whether the costs are fixed or variable with respect to product cost. a. Production employees are paid on a "piece rate" system, whereby each is paid a fixed dollar amount for each unit of product (s)he assembles. b. Production employees are paid an hourly rate, and guaranteed a 40 hour work week by contract with the employer (whether there is work to do or not). c. Production employees are paid an hourly rate, and the employer sends them home without pay when there are no products to assemble. d. Direct materials are purchased and entered into production. e. Salespeople are paid 10% of the cost of each unit that they sell. V or F - (circle one) V or F - (circle one) V or F - (circle one) V or F - (circle one) V or F - (circle one)

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Breakeven analysis Answer this question by filling in the blanks in the paragraphs below. Be sure that your answers are as clear and correct as possible. The formula for a straight line in two-dimensional space is frequently shown as y = mx + b. In "breakeven" graphs, two straight lines are usually depicted -- one where y = total costs and another where y = total revenues.
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A100_Mgl_2_solutions - Fixed versus variable costs Several...

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