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 a. $1,450,000. b. $1,023,529. c. $621,429. d. $435,000. 12. If the break-even volume in dollars is $1,446,000, then the total fixed costs for the period must be: a. $433,800. b. $361,500. c. $516,425. d. $1,446,000. 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? a. $116,667 b. $200,000 c. $133,333 d. $175,000 e. $ 28,000 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? a. $8,667 b. $2,600 c. $ 600 d. $2,000 e. $4,600 16. What must sales (in dollars) be in order for Maggie to earn a $15,000 profit? a. $73,667 b. $19,500 c. $22,100 d. $51,000 e. $15,000 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: a. $2.666 b. $2.767 c. $3.108 d. $3.542 2. The estimate of the fixed costs of running the cafeteria department using the high-low method is: a. $630 b. $9,800
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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: a. $630 + $3.542X b. $10,733 + $2.666X c. $9,800 + $2.666X d. $10,928 + $3.108X e. $10,733 + $2.767 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? a. purely variable cost. b. discretionary fixed cost. c. step cost. d. mixed cost. 7. In the mixed-cost function, Y = $10,000 + $5X, the $10,000 stands for a. total fixed cost. b. total cost. c.
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This note was uploaded on 05/25/2011 for the course AMH AMH 2097 taught by Professor Christophergriffen during the Spring '09 term at FSU.

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

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