1. From the rst to the last, what is the order to develop the master budgets? P = Production budget D = Direct materials costs budget B= Budgeted income statement R= Sales Revenues budget A. the order is: RDPB. B. the order is: RPDB. C. the order is: RBPD. D. the order is: BPDR 2. Weber Company computes net operating income under both the absorption costing approach and the variable costing approach. For a given year the absorption costing net operating income was greater than the variable costing net operating income. This fact suggests that: A. variable manufacturing costs were less than fixed manufacturing costs. B. more units were produced during the year than were sold. C. more units were sold during the year than were produced. D. xed costs were greater than variable costs for the year. 3. Last year, Twins Company reported $750,000 in sales (25,000 units) and a net operating income of $25,000. At the break-even point, the company's total contribution margin equals $500,000. Based on this information, the company's: A. contribution margin ratio is 40%. B. breakeven point is 24,000 units. C. variable expense per unit is $9. D. variable expenses are 60% of sales. 4. Which of the following is NOT an assumption for typical cost-volume-prot (CVP) calculations? A. Selling price, variable expense per unit, and xed expense per unit do not change throughout the relevant range. B. There is no change in inventory levels. C. In a multiproduct company, the sales mix does not change. D. The selling price is not affected by the volume changes. 5. Iverson Corporation's variable expenses are 60% of sales. At the $400,000 sales level, the degree of operating leverage is 5. If sales increase by $40,000 (i.e., at the $440,000 level), the new degree of operating leverage will be (rounded): A. 3.67 B. 2.86 C. 5.25 D. 5.0