$1.$ Absorption Costing:Q: A company produces $5,000$ units, incurs $$20,000$ in direct materials, $$15,000$ in direct labor, and $$10,000$ in variable overhead. If fixed overhead is $$5,000,$ what is the total product cost per unit using absorption costing?

B$.$$$10$

$2.$Variable Costing:

Q: For the same production scenario, what is the total product cost per unit using variable costing?

A$.$$$8$B$.$$$10$C$.$$$12$D$.$$$15$

$3.$Cost$-$Volume$-$Profit $($CVP$)$:

Q: A company sells a product for $$50$ per unit, has variable costs of $$30$ per unit, and fixed costs of $$20,000.$ How many units must the company sell to break even?

D$\mathrm{.}1,000$ units

$4.$Absorption Costing:

Q: If the company in question $1$ sells $4,000$ units, what is the total operating income under absorption costing?

A$.$$$5,000$B$.$$$10,000$C$.$$$15,000$D$.$$$20,000$

Product Cost per unit $=($Total Manufacturing cost$)/$ Number of Units produced

$5.$Variable Costing:

Case $2/$Team$2$: Absorp$$on Cos$$ng$,$ Variable Cos$$ng and CVP: Please provide all answers in the provided blue book and only ONE SUBMISSION PER TEAM IS PERMITTED. All mul$$ple$-$choice should be entered on a standard scantron. Q: What is the total operating income for the same scenario $($selling $4,000$ units$)$ under variable costing?

A$.$$$5,000$B$.$$$10,000$C$.$$$15,000$D$.$$$20,000$

$6.$Cost$-$Volume$-$Profit $($CVP$)$:

Q: If the company in question $3$ sells $1,200$ units, what is the total contribution margin?

A$.$$$12,000$B$.$$$18,000$

C$.$$$24,000$

D$.$$$30,000$

$7.$Absorption Costing:

Q: What is the contribution margin ratio for the company in question $1?($Use the information from question $1)$

A$\mathrm{.}20\%$B$\mathrm{.}30\%$C$\mathrm{.}40\%$D$\mathrm{.}50\%$

Conceptual Questions:

$8.$Absorption Costing:

Q: Explain the main difference between absorption costing and variable costing. How does each method treat fixed manufacturing overhead costs?

$9.$Variable Costing:

Q: Discuss a situation in which variable costing might provide more useful information for decision$-$making than absorption costing.

$10.$Cost$-$Volume$-$Profit $($CVP$)$:

Q: Why is the breakeven point an important concept in cost$-$volume$-$profit analysis? Provide two managerial implications of understanding the breakeven point.

Case $2/$Team $2$: Absorp$$on Cos$$ng$,$ Variable Cos$$ng and CVP: Please provide all answers in the provided blue book and only ONE SUBMISSION PER TEAM IS PERMITTED. All mul$$ple$-$choice should be entered on a standard scantron.