Question
1- Lucy Treasures operates a chain of gift shops. The company pays $5,000 of rent expense per month for each shop. The managers each shop
1- Lucy Treasures operates a chain of gift shops. The company pays $5,000 of rent expense per month for each shop. The managers each shop are paid a salary of 3,000 per month and all other employees are paid on an hourly basis. Relative to the number of shops the sost of rent is which kind ? a) fixed cost b) variable cost c) mixed cost d) opportunity cost
2- Rand Corporation sells perfume bottlesVariable costs for this product are $30 per unit, and the sales price per unit is 50 per unit Total fixed costs amount to $100,000. How many perfume bottles does Rand need to sell achieve a desired profit of $50,0007 a) 5000 units b) 7500 units c) 1000 units d) 2000 units
3- Mendicino Company currently produces and sells 30,000 units of product at a selling price of $12. The product has variable costs of $6 per unit and fixed costs of \$40,000 . The company currently earns a total contribution margin of a) $280,000 b)$200,000 c) $240,000 d) $180,000
4- Company F one product that sales price of $20 per unit, variable costs of 12$ per unit, and total fixed costs of $200,000 . what is the contribution margin ratio ? a)40% b)60 c) 50% d) 66%
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