26. Bayo-Tec Hospital has recently adopted an Activity Based Costing method to cost patientsusing its ER services during the night. The new system has identified the following activities:ARegistrationWaiting to be seen by nurseConsulting with the nurseWaiting to be seen by doctorConsulting with the doctorLab TestScan or MRIGeneral maintenanceA patient presenting symptoms of flu walks in to the ER. The patient spends 3 hours waitingfor the nurse, 5 minutes with the nurse, 30 minutes waiting for the doctor, 3 minutes with thedoctor, and the doctor prescribes the patient one blood test.What is the cost of treating the patient?27. Sanderson sells a single product for $50 that has a variable cost of $30. Fixed costs amountto $5 per unit when anticipated sales targets are met. If the company sells one unit in excessof its break-even volume, the bottom-line profit will be:28. Which of the following would produce the largest increase in the contribution margin perunit?a. A 7% increase in selling priceb. A 15% decrease in selling pricec. A 14% increase in variable costd. A 17% decrease in fixed coste. A 23% increase in the number of units sold29. Which of the following would take place if a company experienced an increase in fixedcosts by 25%?30. Assuming no change in sales volume, an increase in company's per-unit contribution marginwould:
31. A company has fixed costs of $900 and a per-unit contribution margin of $3. Which of thefollowing statement is (are) true?Usethe following information to answerthe next2 questionsNarchie sells a single product for $50. Variable costs are 60% of the selling price, and thecompany has fixed costs that amount to $400,000. Current sales total 16,000 units. Tax rate is40%.
- Spring '15