32.A company's proportion of fixed costs to variable costs is called its ________.A) target profitB) relevant rangeC) mixed costD) cost structure33.Knapp Roofing Company has estimated the following amounts for its next fiscal year:Total fixed costs$840,000Sale price per unit80Variable cost per unit30If the company spends an additional $35,000 on advertising, sales volume would increase by2,500 units. What effect will this decision have on the operating income of Evans? 34.Mist Beverages Company sells two products, A and B. Mist predicts that it will sell 2,500 units of A and 2,000 units of B during the next period. The unit contribution margins are $4.00 and $4.80 for products A and B, respectively. What is the weighted-average unit contribution margin? (Round your answer to the nearest cent.)Weighted-average contribution margin per 35.Jackson Manufacturers has provided the following information regarding the two products that it sells:Jet BoatsSki BoatsSales price per unit$10,000$24,000Variable cost per unit$4,800$18,000Annual fixed costs are $300,000.How many units must be sold in order for Jackson to break even, assuming that Jackson sells five jet boats for every two ski boats sold? (Round any intermediate calculations to two decimal places, and your final answer to the nearest unit.)
Jet BoatsSki BoatsSales price per unit$10,000$24,000Variable cost per unit$4,800$18,000Contribution margin per unit$5,200$6,000Weighted contribution = ($5,200 × 5 jet boats) + ($6,000 × 2 ski boats) = $26,000 + $12,000 = $38,000Weights = 5 jet boats + 2 ski boats = 7 boatsWeighted-average contribution margin per unit = $38,000 / 7 boats = $5,428.57 per boatRequired sales in units = (Fixed costs + Target profit) / Contribution margin per unitRequired sales in units = ($300,000 + 0) / $5,428.57 per boat = 55 boats55 boats in the ratio of 5:2 are 39 jet boats and 16 ski boats.Chapter 211. Which of the following statements is true of absorption costing?A. It considers fixed selling and administrative costs as product costs.B. It considers variable selling and administrative costs as product costs.C. It considers fixed manufacturing overhead cost as product costs.D. It considers variable manufacturing overhead cost as period costs.
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- Fall '17