26.Turner Company's contribution margin ratio is 15%. If the degree of operating leverage is 12 at the $150,000 sales level, net operating income at the $150,000 sales level must equal: A.$1,500 B.$2,700 C.$2,160 D.$1,875 27.Visions, Inc. has two service departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly). The company allocates Building Maintenance cost on the basis of square footage and believes that Building Maintenance provides more service than Human Resources. The square footage occupied by each department follows. Human Resources 3,500 Building Maintenance 8,700 Machining 9,900 Assembly 15,000 Over how many square feet would the Building Maintenance cost be allocated (i.e., spread) with the direct method and the step-down method? Direct MethodStep-Down MethodA.Choice A B.Choice B C.Choice C D.Choice D 28.The costs that follow appeared on Shawnah's quality cost report: The sum of Shawnah's prevention and external failure costs is:
ACC2002 Page 9of 1429.Mardist Corporation has sales of $100,000, variable expenses of $75,000, fixed expenses of $30,000, and a net loss of $5,000. How much would Mardist have to sell to achieve a profit of 10% of sales? 30.Gambino Construction adds materials at the beginning of production and incurs conversion cost uniformly throughout manufacturing. Consider the data that follow. Units Beginning work in process 20,000 Started in August 60,000 Production completed 55,000 Ending work in process, 40% complete 25,000 Conversion cost in the beginning work-in-process inventory totalled $120,000, and August conversion cost totalled $270,000. Assuming use of the weighted-average method, which of the following choices correctly depicts the equivalent units of production for materials and the conversion cost per equivalent unit? Equivalent Units: Materials Conversion Cost Per Equivalent Unit A. 55,000 $ 4.91B. 80,000 $ 4.88C. 65,000 $ 6.00D. 80,000 $ 6.00A.Choice A B.Choice B C.Choice C D.Choice D 31.Barrey, Inc. is subject to a 40% income tax rate. The following data pertain to the period just ended when the company produced and sold 45,000 units: How many units must Barrey sell to earn an after-tax profit of $180,000?
ACC2002 Page 10of 1432.For a product which has a positive unit contribution margin, which of the following events would tend to increase total contribution margin by the greatest amount?
- Fall '11