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ACG 2071 Participation Quiz – Version A
1. (1 point-1 minute) Watson provided the following information for June.
Sales
$900,000
Variable expenses
511,650
Fixed expenses
280,250
Show the calculation of the contribution margin ratio. Circle your answer and display it with two decimals.
($900,000 - $511,650) / $900,000 = 43.15%
Note that the CMR is always expressed as a decimal with two decimals places displayed.
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2.
(2 points – 1.5 minutes)
Harris Time Pieces produced and sold 1,200 clocks during March. At this level of
production, the unit amounts of each clock at this level of activity are: selling price of $18, variable cost of $7,
and fixed cost of $4. Show the calculation of the total cost if Harris produces and sells 1,400 clocks. Circle
your answer.
Total fixed costs = $4*1,200 = $4,800
TC at 1,400 units = ($7*1,400) + $4,800 = $14,600
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3.
(3 points – 3 minutes) Wilson, Inc. provided the following information concerning its widget costs:
June
July
August
September
October
Units produced
41,000
43,000
40,300
41,200
43,400
Total cost per
month
$75,000
$80,900
$75,850
$72,000
$80,500
Use the high-low method to determine the cost equation.
Show all calculations here: