In the columbia south carolina area when 600

Info icon This preview shows pages 20–27. Sign up to view the full content.

View Full Document Right Arrow Icon
in the Columbia, South Carolina area. When 600 croissants are baked, the average cost is $0.70. When 720 croissants are baked, the average cost is $0.65. What is the total cost when 670 croissants are baked? Answer Selected Answer: $448. Question 29 2 out of 2 points Jackson, Inc. is preparing a budget for the coming year and requires a breakdown of the cost of electrical power used in its factory into the fixed and variable elements. The following data on the cost of power used and direct labor hours worked are available for the
Image of page 20

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
last six months of this year: Assuming that Jackson uses the high-low method of analysis, the estimated variable cost of steam per direct labor hour is: Answer Selected Answer: $4.00. Question 30 2 out of 2 points Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year.
Image of page 21
How should the cost function be properly stated? Answer Selected Answer: Question 31 2 out of 2 points CVP analysis using activity- based costs will tend to shift cost from fixed to variable classifications, resulting in: Answer Selected Answer: Question 32 2 out of 2 points Framing House, Inc. produces and sells picture frames. Variable costs are $17 per frame, and fixed costs for the year
Image of page 22

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
total $130,000. The selling price is $25 per frame. The sales units required to make a before-tax profit of $15,000 are calculated to be: Answer Selected Answer: 18,125 units. Question 33 2 out of 2 points High operating leverage is a measure of the risk of change in profit a firm assumes when it has relatively: Answer Selected Answer: High fixed cost. Question 34 2 out of 2 points Operating leverage is equal to: Answer Selected Answer: Question 35 2 out of 2 points Cleaning Care Inc.
Image of page 23
expects to sell 10,000 mops. Fixed costs are $10,000, unit sales price is $12, and unit variable costs are $7. Cleaning Care's margin of safety in sales dollars is: Answer Selected Answer: $96,000. Question 36 2 out of 2 points Which one of the following is not included as a factor in CVP analysis? Answer Selected Answer: Question 37 2 out of 2 points Cathy's Towels sells three items: bath towels, hand towels and washcloths in a 4:3:2 mix (a batch of 9 towels has 4 bath towels, 3 hand towels and 2 washcloths). Each bath towel sells for $10 and costs $4, each hand
Image of page 24

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
towel sells for $5 and costs $2; and each washcloth sells for $2.50 and costs $1. The shop's annual fixed expenses are $324,000, and the tax rate is 40%. How many bath towels must the firm sell at the breakeven point? Answer Selected Answer: 36,000. Question 38 2 out of 2 points Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Assume that Staley Co. is currently selling 600 computer monitors per month and monthly fixed costs are $80,000.
Image of page 25
Operating income is calculated to be: Answer Selected Answer: $20,800. Question 39 2 out of 2 points Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs were $8,400,000; unit sales price was $4,600; and unit variable costs were $2,200.
Image of page 26

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 27
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern