1 Wells Corporation has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%. Fixed costs total $400,000 and the weighted- average contribution margin is $100. How many units of product A must * ?be sold to break-even 2) (2 ) (2 ) 2 A recent income statement of Suni Corporation reported the following * :data (2 ) Sales revenue Variable costs Fixed costs $6,800,000 2,800,000 2,500,000 4 Yellow, Inc., sells a single product for $10. Variable costs are $4 per unit and fixed costs total $120,000 at a volume level of 10,000 units. What dollar sales level would Yellow have to achieve to earn a target net profit *?of $240,000 (2) 5 Maxie's budget for the upcoming. year revealed the following figures If the company's break-even sales total $750,000, Maxie's safety margin * would be () (2 ) Sales revenue Contribution margin Net income $840,000 504,000 54,000 6 Montgomery Company has a variable selling cost. If sales volume increases, how will the total variable cost and the variable cost per unit * ?behave ) (2 ) A B. C. D. F Total Variable Cost Increase Increase Increase Remain constant Decrease Variable Cost Per Unit Increase Remain constant Decrease Decrease Increase Choice A Choice B 7 Which of the following statements about managerial accountants is *?false 1) (1 ) Managerial accountants more and more are considered "business ".partners Managerial accountants often are part of cross-functional teams An increasing number of organizations are segregating managerial accountants in separate managerial-accounting departments In a number of companies, managerial accountants make significant business decisions and resolve operating problems 8 The accounting records of Tacoma Company revealed the following costs: direct materials used, $170,000; direct labor, $350,000; manufacturing overhead, $400,000; and selling and administrative expenses, $220,000. Tacoma's :product costs total 2). (2 ) 9 The following information relates to :Day Company Sales Revenue $12 000 000 Contribution Margin $ 4 800 000 Net Income $ 800 00 * Days' operating leverage is (2 ) 10 Plaza Corporation observed that when 25,000 units were sold, a particular cost amounted to $70,000, or $2.80 per unit. When volume increased by 15%, the cost totaled $80,500 (i.e., $2.80 per unit). The cost that Plaza is studying can best *:be described as a 2 (2 ) variable cost .fixed cost semi variable cost discretionary fixed cost .step-fixed cost step-fixed cost 11 Costs that are expensed when * :incurred are called (1) (1 ) product costs direct costs .inventoriable costs .period costs indirect costs 12 .period costs indirect costs 12 At a volume of 20,000 units, Drees reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's * :contribution margin per unit is 2) (2 ) 13 Dana sells a single product at $20 per unit. The firm's most recent income statement revealed unit sales of 100,000, variable costs of $800,000, and fixed costs of $400,000. If a $4 drop in selling price will boost unit sales volume by 20%, * :the company will experience (2 (2 ) No change in profit because a 20% drop in sales price is balanced by a 20% increase in volume An $80,000 drop in profitability .An $240,000 drop in profitability a $400,000 drop in profitability 14 Which of the following would produce the largest increase in the *?contribution margin per unit (2 (2 ) .A 7% increase in selling price .A 15% decrease in selling price .A 14% increase in variable cost .A 17% decrease in fixed cost A 23% increase in the number of units sold 15 15 The break-even point is that level of *:activity where () (2 ) total revenue equals total cost .variable cost equals fixed cost total contribution margin equals the sum of variable cost plus fixed .cost sales revenue equals total variable .cost profit is greater than zero 16 6 PIUILIS yieater than EIU 16 Orion recently reported sales revenues of $800,000, a total contribution margin of $300,000, and fixed costs of $180,000. If sales volume amounted to 10,000 units, the company's variable cost per unit must have been (2) $12 $32 $50 $92 $92 17 Northridge, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $9.75. On the basis of this information, the company's fixed * :maintenance costs were 2 * (2 )