ANEXO A week 1 answ.

# ANEXO A week 1 answ. - ANEXO A Individual Assignment Submit...

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ANEXO A Individual Assignment – Submit at WEEK 2 1 . Cost Volume Profit Analysis 1. Clark Company produces flash drives for computers, which it sells for \$20 each. Each flash drive costs \$12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were \$2 per unit for a total of \$1,000 for the month. How much is the contribution margin ratio? a. 30% b. 40% c. 60% d. 70% 2. If a company had a contribution margin of \$500,000 and a contribution margin ratio of 40%, total variable costs must have been a. \$750,000.00 b. \$300,000.00 c. \$1,250,000.00 d. \$200,000.00 3. Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost \$22,000. If sales are expected to increase \$40,000, by how much will the company's net income increase? a. \$18,000 b. \$28,000 c. \$12,000 d. \$6,000 4. A division sold 200,000 calculators during 2008: S ales \$2,000 ,000 Variable costs: Materials \$380,000 Order processing 150,000 Billing labor 110,000 Selling expenses 60,000 T otal variabl e costs

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700,00 0 F ixed costs 1,000, 000 How much is the contribution margin per unit? a. \$1.00 b. \$3.50 c. \$8.50 d. \$6.50 5. Fixed costs are \$300,000 and the variable costs are 75% of the unit selling price. What is the break-even point in dollars? a.
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ANEXO A week 1 answ. - ANEXO A Individual Assignment Submit...

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