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Final Exam Review

# Final Exam Review - Exam Review Ch 2 Practice Problems...

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Exam Review Ch. 2 Practice Problems Simpson Company produces dolls. Each doll sells for \$20.00. Variable costs per unit are \$14.00. 10. If total fixed costs are \$435,000, then the break-even point is a. 21,750 dolls. b. 31,071 dolls. c. 51,176 dolls. d. 72,500 dolls. 11. If total fixed costs are \$435,000, then the break-even volume in dollars is 12. If the break-even volume in dollars is \$1,446,000, then the total fixed costs for the period must be: Carol’s Fresh Fruit Stand had the following income statement for last year: Sales \$200,000 - Variable Costs 120,000 - Fixed Costs 70,000 Income \$ 10,000 13. What must Carol’s sales (in dollars) be in order for her to break even? 14. What must Carol’s sales (in dollars) be in order for her to earn a profit of \$30,000? a. \$166,667 b. \$250,000 c. \$275,000 d. \$ 75,000 e. \$ 18,000

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Use the following information to answer Questions 17 - 18. Maggie’s Gourmet Cake Company sells cakes for an average sales price of \$65. The variable costs average \$15 per cake and fixed costs total \$2,000. 15. What must sales (in dollars) be in order for Maggie to break even? 16. What must sales (in dollars) be in order for Maggie to earn a \$15,000 profit? Ch. 3 Practice Problems The cafeteria department at Mercy Hospital has experienced the following costs and number of meals served from January through September: Month Cafeteria Costs Meals Served January \$31,800 8,800 February \$34,400 9,000 March \$36,920 9,800 April \$38,280 10,200 May \$38,615 10,458 June \$34,700 9,200 July \$36,344 9,695 August \$43,882 12,211 September \$41,128 11,523 1. Using the high-low method of cost estimation, the variable cost per meal served is: 2. The estimate of the fixed costs of running the cafeteria department using the high-low method is: a. \$630 b. \$9,800
c. \$10,733 d. \$10,928 3. The cost function derived using the high-low method, which can be used to estimate the costs of running the cafeteria is: 6. Which of the following best describes crew supervisor costs in a small construction firm if another crew supervisor is added for every 10 workers employed? 7. In the mixed-cost function, Y = \$10,000 + \$5X, the \$10,000 stands for 8. Cowboy’s Lasso Market uses the high-low method to analyze mixed costs. The following data is available for the past 6 months. Month Number of Packages Cost incurred January 5,000 \$4,200 February 3,800 \$3,608 March 4,200 \$3,855 April 4,800 \$4,050 May 3,600 \$3,640 If 4,500 packages are expected in June, what are the estimated packaging costs? a. \$3,989 b. \$2,200 c. \$4,000 d. \$1,800 e. \$3,953 Ch. 4 Practice Problems

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Final Exam Review - Exam Review Ch 2 Practice Problems...

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