{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Quiz_Lesson_13_Solutions

# Quiz_Lesson_13_Solutions - Lesson 13 Basic Assumption for...

This preview shows pages 1–2. Sign up to view the full content.

Lesson 13 Basic Assumption for Quiz: Assume we are working within the relevant range. 1. ( T / F ) As production increases, variable costs per unit decrease. 2. ( T / F ) As production increases, total fixed costs remain the same. 3. ( T / F ) As production increases fixed costs per unit decrease. 4. ( T / F ) Direct materials typically are a fixed cost. 5. ( T / F ) Mixed costs contain both variable and fixed elements. 6. Matching: a) Line AF:___2___ 1. Total Var. Cost line b) Slope of AF: ___5___ 2. Total Cost Line c) Line BE:___3___ 3. Sales Revenue Line d) Slope of BE: ___6___ 4. Total Profit line e) Point A: ___10___ 5. Var. Cost/unit f) Point C: ___12___ 6. Sales Price/unit g) Distance between pts. at production level D: _11_ 7. Fixed Cost/unit h) If there were a line parallel to AF, intersecting 8. Total Cost/unit the origin it would be the : ___1___ 9. Sales Revenue/unit 10. Total Fixed Costs 11. Profit (NI) or loss 12. Breakeven Point 7. GRAPHING THE COST LINE: HIGH-LOW METHOD Month Volume Cost Jan 4,200 \$22,000 Feb 2,000 \$14,000 Mar 3,600 \$18,000 Apr 5,000 \$26,000 a) Find the variable cost per unit: VC/unit (slope) = (26,000-14,000)/(5,000-2,000) = \$12,000/3,000 unit = \$4/unit b)

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}