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1. the sale price per unit is 8000. the variable cost per unit is 6000 and fixed cost is 15,000,000. how many units must be

1. the sale price per unit is 8000. the variable cost per unit is 6000 and fixed cost is 15,000,000. how many units must be sold to secure net income of 6,000,000. a. 8000 units b. 10,500 units c. 7,500 units d. 10,700 units 2. Use the high - low method to estimate the total cost of 1100 units given the following data High = 1575 units costing 7218 and low= 923 units costing 4591. 3.Activity Base costing may include non manufacturing costs when calculating overhead. T or F 4. Variable cost per unit increases or decreases as production volume increases or decreases. T or F 5. Determine the contribution per unit given the following data: Direct labor per unit= 55 direct material per unit= 27, Fixed cost per unit = 19 and Sale price per unit= 121 a. 102 b. 42 c. 20 d. 39 6. Absorption Costing required by GAAP for external reporting purposes but can result in misleading product cost information and poor managerial decisions. T or F 7. Unit fixed costs increases as the volume of production increases. T or F 8. Absorption Costing includes which of the following: a. Variable overhead b. All of these c. direct labor d. direct material e. fixed overhead 9.If the contribution margin ratio is increased and all other factors are held constant what is the impact on the number of units needed to breakeven. a. the number of units needed to breakeven stays the same b. Non of these is correct c. the number of units needed to break even decreases d. the number of units needed to breakeven increases

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