cost test 4 - 1. ca12h 11-62 (Points: 3.0) Costs that...

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Unformatted text preview: 1. ca12h 11-62 (Points: 3.0) Costs that CANNOT be changed by any decision made now or in the future are: a. fixed costs b. avoidable costs c. indirect costs d. sunk costs 2. ca12h 11-63 (Points: 3.0) In evaluating different alternatives, it is useful to concentrate on: a. variable costs b. fixed costs c. relevant costs d. total costs 3. ca12h 11-77 (Points: 3.0) When there is excess capacity, it makes sense to accept a one-time-only special order for less than the current selling price when: a. additional fixed costs must be incurred to accommodate the order b. incremental revenues exceed incremental costs c. the company placing the order is in the same market segment as your current customers d. it never makes sense 4. ca12h 11-78 (Points: 3.0) Answer the following questions using the information below: Welch Manufacturing is approached by a European customer to fulfill a one-time- only special order for a product similar to one offered to domestic customers. Welch Manufacturing has excess capacity and will not incurr any variable marketing costs. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $40 Direct labor 20 Manufacturing support 35 Marketing costs 15 Fixed costs: Manufacturing support 45 Marketing costs 15 Total costs 170 Markup (50%) 85 Targeted selling price $255 What is the full cost of the product per unit? a. $255 b. $170 c. $110 d. $85 5. ca12h 11-79 (Points: 3.0) Answer the following questions using the information below: Welch Manufacturing is approached by a European customer to fulfill a one-time- only special order for a product similar to one offered to domestic customers. Welch Manufacturing has excess capacity and will not incurr any variable marketing costs. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $40 Direct labor 20 Manufacturing support 35 Marketing costs 15 Fixed costs: Manufacturing support 45 Marketing costs 15 Total costs 170 Markup (50%) 85 Targeted selling price $255 What is the contribution margin per unit? a. $85 b. $145 c. $110 d. $255 6. ca12h 11-80 (Points: 3.0) For Welch Manufacturing, what is the minimum acceptable price of this special order? a. $110 b. $170 c. $145 d. $255 7. ca12h 11-81 (Points: 3.0) What is the change in operating profits if the one-time-only special order for 1,000 units is accepted for $180 a unit by Welch? a. $10,000 increase in operating profits b. $70,000 increase in operating profits c. $10,000 decrease in operating profits d. $75,000 decrease in operating profits 8. ca12h 11-122 (Points: 3.0) Answer the following questions using the information below: Stephans Corporation currently manufactures a subassembly for its main product....
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cost test 4 - 1. ca12h 11-62 (Points: 3.0) Costs that...

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