1. Which of the following markets is characterized by the following: many buyers and sellers, a homogeneous product, easy entry into and exit from the industry, and all firms are price takers?

a. perfectly competitive market

b. monopolistic competition

c. monopoly

d. oligopoly

2. The following information pertains to three different products being sold by

Which product or products have an inelastic demand curve?

a. Product A

b. Product B

c. Product C

d. Both Product A and Product C

3. Thebes Company had the following information:

What is the markup based on cost of goods sold?

a. 50.0%

b. 100.0%

c. 37.5%

d. 62.5%

4. Banwood Company has the following information for 20x1:

There were no beginning inventories.

What is the ending inventory for Banwood using the absorption costing method?

a. $300,000

b. $180,000

c. $120,000

d. $80,000

5. Jasmine Company?s expected sales were 2,000 units at $100 per unit. During 20x1, it had actual sales of 1,800 units at $110 per unit. Budgeted variable costs were $60 per unit. What is Jasmine?s sales price variance?

a. $8,000 (U)

b. $20,000 (U)

c. $18,000 (F)

d. $2,000 (U)

Transcribed Image Text:

Old Price New Price Product New Quantity 1,900 4,600 5,500 Old Quantity A $10.00 $11.00 4,000 6,000 18.00 30.00 Revenues $400,000 Cost of goods sold: Direct materials Direct labor $100,000 50,000 50,000 200,000 Overhead Gross profit Selling and administrative expenses Operating income $200,000 $125,000