Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: \[\begin{array} {l r r r } & \text { Unit Sales Price } & \text { Unit Variable Costs } & \text { Unit Sale: } \\ \text { Product A } & \$ 150 & \$ 100 & 8,000 \\ \text { Product B } & 100 & 60 & 2,000 \end{array}\] Fixed costs are $480,000. The weighted-average breakeven point is

A) 11,429 units. B) 10,000 units. C) 5,333 units. D) 10,667 units. A) 11,429 units. B) 10,000 units. C) 5,333 units. D) 10,667 units.

Given the following cost and activity observations for Notwen Company's maintenance costs,use the high-low method to calculate Notwen's monthly fixed costs for maintenance. \[\begin{array} { c c r } & \text { Cost } & \text { Units Produced } \\ \text { January } & \$ 130,000 & 25,000 \\ \text { February } & 180,500 & 35,000 \\ \text { March } & 151,100 & 28,000 \\ \end{array}\]

A) $11,250 B) $4,550 C) $3,750 D) $2,650 A) $11,250 B) $4,550 C) $3,750 D) $2,650

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: \[\begin{array} { | l r r r | } \hline & \text { Unit Sales Price } & \text { Unit Variable Costs } & \text { Unit Sales } \\ \text { Product A } & \$ 150 & \$ 100 & 8,000 \\ \text { Product B } & 100 & 60 & 2,000 \\ \hline \end{array}\] Fixed costs are $480,000. The weighted-average contribution margin is

A) $42. B) $45. C) $48. D) $90. A) $42. B) $45. C) $48. D) $90.

Exam 20: Cost Behavior Analysis

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Suppose a company rents a building for $250,000 a year for the purpose of manufacturing between 80,000 and 140,000 units (the relevant range of activity).The rental cost per unit of production will __________ as production levels increase.

(Multiple Choice)

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Question 81

Total variable and fixed costs will be the same regardless of how many units are produced.

(True/False)

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Question 82

The level of operating capacity that is needed to meet expected sales demand is called

(Multiple Choice)

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Question 83

Theoretical capacity refers to

(Multiple Choice)

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Question 84

The breakeven point is the level of activity at which fixed costs are recovered.

(True/False)

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Question 85

A contribution margin income statement is formatted to emphasize cost behavior rather than organizational functions.

(True/False)

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Question 86

The engineering method of separating costs

(Multiple Choice)

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Question 87

Regression analysis can be performed using one or more activities to predict costs.

(True/False)

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Question 88

Ryan's Landscaping sells a quality brand of hoes,shovels,and rakes in a sales mix of 2:4:2.The company's fixed costs are $61,600.Product data include the following: Unit Sales Unit Variable Price Costs Hoes \ 12 \ 8 Shovels 15 7 Rakes 16 8 a. Compute the weighted-average contribution margin. b. Determine the weighted-average breakeven point. c. Calculate the breakeven point for each product. d. Determine the breakeven point in sales dollars.

(Essay)

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Question 89

Sales mix is the proportion of each product's unit sales relative to the company's total sales dollars.

(True/False)

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Question 90

In cost-volume-profit analysis,sales revenue is computed by multiplying units sold by the selling price per unit,and the targeted profit is projected by management.

(True/False)

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Question 91

Practical capacity and normal capacity are synonymous terms.

(True/False)

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Question 92

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: Unit Sales Price Unit Variable Costs Unit Sale: Product A \ 150 \ 100 8,000 Product B 100 60 2,000 Fixed costs are $480,000. The weighted-average breakeven point is

(Multiple Choice)

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Question 93

Given the following cost and activity observations for Notwen Company's maintenance costs,use the high-low method to calculate Notwen's monthly fixed costs for maintenance. Cost Units Produced January \ 130,000 25,000 February 180,500 35,000 March 151,100 28,000

(Multiple Choice)

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Question 94

Tigor Enterprises has sales revenue of $340,000 for 20xx.Its product sells for $12 and has a 20 percent contribution margin.Fixed costs are $32,000.What is Tigor Enterprises' operating income for 20xx?

(Multiple Choice)

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Question 95

The equation that will provide the breakeven point in units (SP = selling price)is

(Multiple Choice)

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Question 96

Indicate whether each of the following costs of productive output is usually variable (V)or fixed (F): a. Machine operator's hourly wages b. City operating license c. Machine helper's wages d. Wiring used in radios e. Indirect materials f. Property insurance g. Gasoline for delivery truck h. Real estate taxes

(Essay)

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Question 97

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: Unit Sales Price Unit Variable Costs Unit Sales Product A \ 150 \ 100 8,000 Product B 100 60 2,000 Fixed costs are $480,000. The weighted-average contribution margin is

(Multiple Choice)

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Question 98

Mixed costs are fixed and variable costs that are recorded in the same general ledger account.

(True/False)

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Question 99

Breakeven,simply,is when total costs equal total revenues.

(True/False)

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Question 100

Showing 81 - 100 of 168

Exam 20: Cost Behavior Analysis

Suppose a company rents a building for $250,000 a year for the purpose of manufacturing between 80,000 and 140,000 units (the relevant range of activity).The rental cost per unit of production will __________ as production levels increase.

Total variable and fixed costs will be the same regardless of how many units are produced.

The level of operating capacity that is needed to meet expected sales demand is called

Theoretical capacity refers to

The breakeven point is the level of activity at which fixed costs are recovered.

A contribution margin income statement is formatted to emphasize cost behavior rather than organizational functions.

The engineering method of separating costs

Regression analysis can be performed using one or more activities to predict costs.

Sales mix is the proportion of each product's unit sales relative to the company's total sales dollars.

In cost-volume-profit analysis,sales revenue is computed by multiplying units sold by the selling price per unit,and the targeted profit is projected by management.

Practical capacity and normal capacity are synonymous terms.

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: Unit Sales Price Unit Variable Costs Unit Sale: Product A \ 150 \ 100 8,000 Product B 100 60 2,000 Fixed costs are $480,000. The weighted-average breakeven point is

Given the following cost and activity observations for Notwen Company's maintenance costs,use the high-low method to calculate Notwen's monthly fixed costs for maintenance. Cost Units Produced January \ 130,000 25,000 February 180,500 35,000 March 151,100 28,000

Tigor Enterprises has sales revenue of $340,000 for 20xx.Its product sells for $12 and has a 20 percent contribution margin.Fixed costs are $32,000.What is Tigor Enterprises' operating income for 20xx?

The equation that will provide the breakeven point in units (SP = selling price)is

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: Unit Sales Price Unit Variable Costs Unit Sales Product A \ 150 \ 100 8,000 Product B 100 60 2,000 Fixed costs are $480,000. The weighted-average contribution margin is

Mixed costs are fixed and variable costs that are recorded in the same general ledger account.

Breakeven,simply,is when total costs equal total revenues.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Contributed Capital

Investments

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

The Changing Business Environment - a Managers Perspective

Cost Concepts and Cost Allocation

Costing Systems- Job Order Costing

Costing Systems- Process Costing

Value-Based Systems- Abm and Lean

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, incltarget Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

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