Question
1) Coronado Company has variable costs that are 40% of its unit selling price and fixed costs of $27600. What level of sales dollars will
1) Coronado Company has variable costs that are 40% of its unit selling price and fixed costs of $27600. What level of sales dollars will Coronado report at its break-even point? O $69000 O $16560 O $11040 O $46000
2)
Waterway Makeup produces face cream. Each bottle of face cream costs $10 to produce and can be sold for $14. The bottles can be sold as is, or processed further into sunscreen at a cost of $15 each. Waterway Makeup could sell the sunscreen bottles for $24 each. What should Waterway Makeup do? O Face cream must be further processed because it increases operating income by $4 each. O Face cream must be further processed because its operating income is $9 each. O Face cream must not be further processed because incremental revenue is less than incremental processing costs. O Face cream must not be further processed because it decreases operating income by $1 each.
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