A company sells two models of a product basic and

A company sells two models of a product – basic and premium. The basic model has a variable cost of
$75 and sells for $100. The premium model has a variable cost of $100 and sells for $150. If the company
usually sells 5,000 basic models and 2,500 premium models, then the contribution margin per composite
unit is ___
- $100
Acme Manufacturing recently added another shift which required the company to hire another
production supervisor. The supervisor’s salary would be considered a:
A company sells two models of a product – basic and premium. If the company sells 5,000 basic models
and 2,500 premium models, then the sales mix can be expressed as:
In multiproduct CVP analysis, a(n) ___ unit is a specific number of units of each product in proportion to
their expected sales mix
The cost accountant at Company C used the high-low method to determine a cost equation of $14000
plus $1.50 per unit. If the company plans to produce 200,500 units next month, then the total estimated
cost will be

RST company produces cost 6 per unit. Fixed costs 30,000. Product sells 10 per unit. If company sells
15000 units, the degree of operating leverage is __
- 2
Match each example below to the correct cost type
A –Variable – Shipping Costs $15 per unit
B – Fixed – Depreciation, $4,500 per month
C – Variable – Direct Materials $25 per unit
D – Mixed – Sales Rep Pay, $1000 per month plus 10% sales commuission
E—Fixed – Property taxes, $12000 per year
F – Mixed – Water and Sewer, $50 per month plus $0.10 per gallon
RST company produces a product that has a variable cost of $6 per unit. The company’s fixed costs are
30,000. The products sells for $10 per unit. RST earns profit of $20,000. The margin of safety is
$50000
RST company produces a product that has a variable cost of $6 per unit. The company’s fixed costs are
30000. The product sells for $10 per unit. RST desires to earn a profit of $20,000. How many units must
be produced to earn $20,000 profit??

A(n) ______ cost changes in proportion to changes in volume of activity.
Variable
Match each example below to correct cost type
A – Mixed – Salary Rep’s Pay which includes salary plus commission
B – Variable – Production Line Worker’s Pay which is an hourly wage
C – Fixed – Production Supervisor’s salary