Question
11) If the sales price per unit is $70, fixed costs are $130,000, and variable costs are $40 per unit, then 5,300 units would have
11) If the sales price per unit is $70, fixed costs are $130,000, and variable costs are $40 per unit, then 5,300 units would have to be sold to achieve the desired profit is $26,000.
Group of answer choices
True
False 12) Transfer pricing can create problems if a company division can purchase inputs outside of the company at a price lower than the internal transfer price from another division.
Group of answer choices
True
False 13) If fixed costs are $24,000, variable costs are $25 per unit, and the product sells for $45, the total contribution margin at the breakeven point is $1,200.
Group of answer choices
True
False 14) When a manufacturing company uses a standard costing system, the Cost of Goods Sold should be reported on the Income Statement at standard cost amounts (as opposed to actual costs which are standard cost amounts adjusted for the closing of any variance accounts).
Group of answer choices
True
False 15) If a firm has a degree of operating leverage of 2.5 and sales next year are expected to increase by 8 percent, than the firms income would be expected to increase by 20 percent.
Group of answer choices
True
False
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