Magic screen company produced 49000 units during the

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Magic Screen Company produced 49,000 units during the year. Variable and fixed production costs have remained constant the entire year. There were no beginning inventories. The dollar value of the ending inventory using full costing will be: A $180,000 $198,000 $189,000 $18,000 B C D
QUESTION: 12 [QUESTION BANK ID: 108679] CORRECT For O’Brien Company, selling price is $30 per unit and variable costs are $18 per unit. Fixed costs are $90,000. At the break-even point, O’Brien would report sales revenue of TYPE: MULTIPLE CHOICE B C D
QUESTION: 13 [QUESTION BANK ID: 320694] CORRECT The Renaissance Man Clothing Company experienced the following costs in 2007: Direct materials $16.00/unit Direct labor $4.85/unit Variable manufacturing overhead $12.25/unit Variable selling $0.95/unit Fixed manufacturing overhead $438,850 Fixed selling and administrative $110,000 There was no beginning inventory. During the year the company manufactured 67,000 units. If net income using variable and full costing was $245,000 and $205,700, respectively, how many units did the company sell in 2007? TYPE: MULTIPLE CHOICE B C D
QUESTION: 14 [QUESTION BANK ID: 88929] INCORRECT Randy Company produces a single product that is sold for $85 per unit. If variable costs per unit are $26 and fixed costs total $47,500, how many units must Randy sell in order to earn a profit of $100,000? TYPE: MULTIPLE CHOICE B C D
QUESTION: 15 [QUESTION BANK ID: 26095] CORRECT Josie’s Lunch Counter’s employees know that they serve three meat and potatoes lunches for every two soup and salad lunches on a typical day. The variable costs for a meat and potatoes lunch total $2.30, while the variable costs for the soup and salad lunch are $2.85. The price for any lunch is $5.75. If fixed costs are $120,802, how many lunches must be sold for Josie’s to earn a profit of $77,520? TYPE: MULTIPLE CHOICE A 57,485 42,387 38,509 B C
D
61,400 QUESTION: 16 [QUESTION BANK ID: 320645] CORRECT DVD Now is a direct marketer of popular movies. Following is information about its revenue and cost structure: Selling Price $13.00 per DVD Variable Costs: Production (manufacturing costs) $ 3.00 per DVD Selling and Administration (non-manufacturing costs) $ 1.00 per DVD Fixed Costs: Production (manufacturing costs) $1,000,000 per year Selling and Administration (non-manufacturing costs) $3,000,000 per year Two-thirds of the variable production cost represents the royalty paid to the film’s creators. Assume they are willing to cut the royalty in half if the price is reduced by the same dollar amount as the reduction in royalty. What is the new contribution margin ratio (i.e., contribution margin ? sales)? Assume the company uses variable costing. TYPE: MULTIPLE CHOICE B C
D
72% QUESTION: 17 [QUESTION BANK ID: 320685] TYPE: MULTIPLE CHOICE

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