1. If variable cost per unit decreased because of the decrease in materials cost, the break-even point would:

decrease

increase

remain constant

move up and then down

As part of operations control, budgeted results are compared to

management expectations

estimated results

actual results

budgeted results

Budget performance reports summarize

capital investment plans

changes in payroll activity

normal standards

budgeted cost, actual results, and over (under) budget

San Antonio Business Furniture Inc. makes office tables. During the most productive month of the year, 1,200 tables were manufactured at a total cost of $38,000. In its slowest month, the company made 700 tables at a total cost of $23,000. Using the high-low method of cost estimation, total fixed costs are:

$6,000

$21,000

$2,000

$36,000

If fixed cost are $680,000 and unit contribution margin is $16.25, what is the break-even point in units if the variable costs are decreased by $.75 per unit

68,000

40,000

43,871

38,000

Big Mac Manufacturing Inc.'s budget at 8,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 9,000 units of production, a flexible budget would show:

variable cost of $44,000 and $23,000 in fixed costs

variable cost of $49,500 and $25,875 in fixed costs

variable costs of $49,500 and $23,000 of fixed cost

variable costs of $39,500 and fixed cost of $25,875