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Extra multiple choice for test 2

Extra multiple choice for test 2 - MC#2 Student 1 An...

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MC #2 Student: ___________________________________________________________________________ 1. An example of a cost that is variable with respect to the number of units produced and sold is: A. insurance on the headquarters building. B. power to run production equipment. C. supervisory salaries. D. depreciation of factory facilities. 2. Tempcon, Inc. sells and installs furnaces for $3,000 per furnace. The following cost formula relates to last year's operations at Tempcon: Y = $125,000 + $1,800X If Tempcon sold and installed 500 furnaces last year, what was its total contribution margin last year? 3. The cost of goods sold in a retail store totaled $325,000. Fixed selling and administrative expenses totaled $115,000 and variable selling and administrative expenses were $210,000. If the store's contribution margin totaled $590,000, then sales must have been: 4. Which of the following is true regarding the contribution margin ratio of a single product company?
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5. Assuming that the unit sales are unchanged, the total contribution margin will decrease if: A. fixed expenses increase. B. fixed expenses decrease. C. variable expense per unit increases. D. variable expense per unit decreases.
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