test chapter 5

# test chapter 5 - Shipping expense is \$9,000 for 8,000...

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Shipping expense is \$9,000 for 8,000 pounds shipped and \$11,250 for 11,000 pounds shipped. Assuming that this activity is within the relevant range, if the company ships 9,000 pounds, its expected shipping expense is closest to: \$10,125 \$9,972 \$8,583 \$9,750 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? \$1,025,000 \$900,000 \$600,000 \$475,000 Contribution margin is the excess of revenues over: Manufacturing cost. All direct costs. Cost of goods sold. All variable costs. At a sales level of \$300,000, James Company's gross margin is \$15,000 less than its contribution margin, its net operating income is \$50,000, and its selling and administrative expenses total \$120,000. At this sales level, its contribution margin would be: \$250,000 \$155,000 \$185,000 \$170,000 Kalbach Corporation, a manufacturing company, has provided the following financial data for November: The company had no beginning or ending inventories. The contribution margin for November was: \$285,000 \$166,000 \$36,000 \$310,000 Within the relevant range, the variable cost per unit: Increases as activity increases. Decreases as activity increases. Can increase or decrease as the activity changes. Remains constant as activity changes. Bakken 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 variable manufacturing cost per unit is: \$16.50 \$106.90 \$90.40

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\$45.50 When the level of activity increases within the relevant range, how does each of the following change? Choice C
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## This note was uploaded on 12/13/2011 for the course ACCT 201 taught by Professor Balli during the Spring '11 term at greenriver.edu.

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test chapter 5 - Shipping expense is \$9,000 for 8,000...

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