Quiz 3b - 4. At an activity level of 4,500 machine-hours in...

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Quiz 3 1. An increase in the activity level within the relevant range results in: A. an increase in fixed cost per unit. B. a proportionate increase in total fixed costs. C. an unchanged fixed cost per unit. D. a decrease in fixed cost per unit. 2. Iacopi Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $172.50 per unit. The best estimate of the total contribution margin when 4,300 units are sold is: A. $343,140 B. $65,790 C. $121,260 D. $411,080 3. Anderton Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total monthly fixed manufacturing cost is: A. $391,200 B. $271,200 C. $656,400 D. $351,200
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Unformatted text preview: 4. At an activity level of 4,500 machine-hours in a month, Novosel Corporation's total variable maintenance and repair cost is $394,830 and its total fixed maintenance and repair cost is $105,570. What would be the total maintenance and repair cost, both fixed and variable, at an activity level of 4,600 units in a month? Assume that this level of activity is within the relevant range. A. $511,520 B. $505,960 C. $509,174 D. $500,400 5. You are applying the scattergraph method and find that the regression line you have drawn passes through a data point with the following coordinates: 1,000 units and $9,600. The regression line passes through the Y axis at the $600 point. Which of the following is the cost formula that represents the slope of this line? A. Y=$600+$9.00X B. Y=$600+$9.60X C. Y=$9,600+$.06X D. None of these is true....
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