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12. Jacob Company sells widgets to various customers. Due to the fragile nature
of their widgets they ship them in a specialized box that can fit up to ten
widgets per box. The size of customer orders vary greatly. Some customers order 2, 7, 30, 48, 61, 238, etc. widgets per order. Shipping for Jacob Company is a:13. Morgan Technologies sells a single product at $20 per unit. The firm's most recent income statement revealed unit sales of 100,000, variable costs of $800,000, and fixed costs of $400,000. If a $4 drop in selling price will boost unit sales volume by 20%, the company will experience: 14. Stuart Company’s accounting records reflect the following inventory
information: Raw materials inventory increased by $20,000 during the year Work-in-process inventory increased by $125,000 during the year Finished goods inventory decreased by $10,000 during the year During the year, Stuart purchased $950,000 of raw materials, incurred direct labor costs of $125,000 and incurred manufacturing overhead totaling $160,000. Stuart’s cost of goods manufactured for the year is $1,400,000. What
amount would Stuart have to report as cost of goods sold for the year? 15. Elise Corporation has the following sales mix for its three products: A = 20%; B = 35%; and C = 45%. Fixed costs total $400,000 and the weighted-average contribution margin, aka the combined contribution margin for all three products after factoring in the sales mix, is $100. How many units of product A must be sold to break-even? A. 800 B. 4,000 C. 20,000 D. 80,000 E. Cannot be determined based upon the information presented. 16. Charriott sells a single product at $14 per unit. The firm's most recent income statement revealed unit sales of 80,000, variable costs of $800,000, andfixed costs of $560,000. Management believes that a $3 drop in selling price will boost unit sales volume by 20%. Which of the following correctly depicts how these two changes will affect the company's break-even point?