1. An increase in fixed costs will cause the break-even point to decrease... True or False

2. Rental of equipment at $5,000 per month plus $6 for each machine hour used over 9,000 hours is a type of mixed cost..... True or False

3. Conversion costs are made up of direct labor and factory overhead.... True or False

4. Which of the following would be classified as a variable cost? A. Straight-line depreciation on production equipment B. Copy lease payment of $500 per month plus $0.01 per copy C. Fabric for use in quilts to be produced. D. None of the above

5. Mixed costs: A. have both the characteristics of fixed costs and variable costs. B. change in relation to the passage of time. C. cannot be accurately plotted on a graph. D. None of the above

6. What is the correct formula to calculate the contribution margin ratio? A. Fixed Costs / Unit Contribution Margin B. (Sales - Variable Costs) / Sales C. (Fixed Costs + Target Profit) / Unit Contribution Margin D. None of the above

9. Which statement(s) is True about the uses of managerial accounting? A. Managerial accounting is used to support long-term planning decisions. B. Managerial accounting helps a company evaluate the performance of company decisions. C. Managerial accounting helps users run the day-to-day operations of the business. D. All of the above

11. Fixed costs for Flag Stamp Co. are $250,000. The selling price per unit is $20.00, and variable costs are $15.00. The contribution margin ratio is ? (state whole number only -no decimals).

12. Fixed costs for Flag Stamp Co. are $250,000. The selling price per unit is $20.00, and variable costs are $15.00. The break-even sales (in units) are ?

13. Assume sales are $750,000, variable costs are 70% of sales, and income from operations is $100,000. What is the contribution margin ratio and fixed cost, respectively?

14. The following costs were incurred in August: Direct Materials $20,000 Direct Labor $18,000 Manufacturing (Factory) Overhead $21,000 Selling and Administrative Expenses $37,000 (1) What is the amount of the prime costs? (2) What is the amount of the period costs? (3) What is the amount of the conversion costs? (4) What is the amount of the product costs?

15. If Ragged Edge Arts sells quilts and paintings, and it has estimated selling 50 quilts at $250 each and 42 paintings at $500 each, what are the estimated sales for next year?