10) Which of the following is the correct formula to calculate the target cost? A) Target Cost-Target Sales Price + Desired Net Profit B Target Cost - Target Sales Price - Desired Net Profit C) Target Cost Target Sales Price D) Target Cost = Desired Net Profit + Research and Development Expenses 11) The fixed costs per unit will decrease as production decreases B) increase as production decreases C) remain the same as production levels change D) increase as production increases 12) Costs that have both variable and fixed components are called A) fixed costs B) variable costs j mixed costs D) contribution costs 13) Which of the following statements is true of the behavior of total variable costs within the relevant range? A) They will decrease as production decreases. B) They will increase as production decreases. C) They will decrease as production increases. D) They will remain the same as production levels change. 14) Kim Airedale, a manager of Waggers, Inc. was reviewing the water bills of a dog daycare and spa. She determined that its highest and lowest bills of s3700 and $2800 were incurred in the months of May and November respectively. If 500 dogs were washed in May and 200 dogs were washed in November, what was the variable cost per dog associated with the company's water bill? A) $7.20 B) $2.67 C) $3.00 D) $14.00 Managerial Accounting-Exam 2 (Summer 2018) 10) Which of the following is the correct formula to calculate the target cost? A) Target Cost-Target Sales Price + Desired Net Profit B Target Cost - Target Sales Price - Desired Net Profit C) Target Cost Target Sales Price D) Target Cost = Desired Net Profit + Research and Development Expenses 11) The fixed costs per unit will decrease as production decreases B) increase as production decreases C) remain the same as production levels change D) increase as production increases 12) Costs that have both variable and fixed components are called A) fixed costs B) variable costs j mixed costs D) contribution costs 13) Which of the following statements is true of the behavior of total variable costs within the relevant range? A) They will decrease as production decreases. B) They will increase as production decreases. C) They will decrease as production increases. D) They will remain the same as production levels change. 14) Kim Airedale, a manager of Waggers, Inc. was reviewing the water bills of a dog daycare and spa. She determined that its highest and lowest bills of s3700 and $2800 were incurred in the months of May and November respectively. If 500 dogs were washed in May and 200 dogs were washed in November, what was the variable cost per dog associated with the company's water bill? A) $7.20 B) $2.67 C) $3.00 D) $14.00 Managerial Accounting-Exam 2 (Summer 2018)