1.

Managerial accounting is most concerned with:

Select one:

a. projecting profit levels for new advertising campaigns

b. preparing financial statements to be audited

c. using GAAP to properly value and classify transactions

d. summarizing the financial history of a business

2.

Shelton, Inc. manufactures and sells guitar strings. In this past year, they sold 150,000 feet of guitar strings at $ 10 / foot. On average, they incurred $2.75 of variable costs per foot of guitar strings and incurred $60,000 of fixed costs every month. They pay income tax of 25% annually. They are trying to project profit in the coming year. If sales decrease to 135,000 feet, total variable costs will:

Select one:

a. Increase

b. Decrease

c. Remain Constant

d. Cannot Determine

3.

Shelton, Inc. manufactures and sells guitar strings. In this past year, they sold 150,000 feet of guitar strings at $ 10 / foot. On average, they incurred $2.75 of variable costs per foot of guitar strings and incurred $60,000 of fixed costs every month. They pay income tax of 25% annually. They are trying to project profit in the coming year. If executive salaries increase and sales decrease to 145,000 feet, after-tax profit will:

Select one:

a. Increase

b. Decrease

c. Remain Constant

d. Cannot Determine

4.

Shelton, Inc. manufactures and sells guitar strings. In this past year, they sold 150,000 feet of guitar strings at $ 10 / foot. On average, they incurred $2.75 of variable costs per foot of guitar strings and incurred $60,000 of fixed costs every month. They pay income tax of 25% annually. They are trying to project profit in the coming year. If sales decrease to 140,000 feet, in comparison to last year, the fixed costs per foot will:

Select one:

a. Increase

b. Decrease

c. Remain Constant

d. Cannot Determine

5. Shelton, Inc. manufactures and sells guitar strings. In this past year, they sold 150,000 feet of guitar strings at $ 10 / foot. On average, they incurred $2.75 of variable costs per foot of guitar strings and incurred $60,000 of fixed costs every month. They pay income tax of 25% annually. They are trying to project profit in the coming year. If variable costs increase to $2.85 / foot, in comparison to last year, the break-even point in units will

Select one:

a. Increase

b. Decrease

c. Remain Constant

d. Cannot Determine