Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bank Strategy, Governance And Ratings

Authors: P. Molyneux

3rd Edition

0230313345, 9780230313347

More Books

Students also viewed these Accounting questions

Question

3. Put a rotating monitor in charge of equipment or materials.

Answered: 1 week ago

Question

Describe how to train managers to coach employees. page 422

Answered: 1 week ago