14. Compute the contribution murgin in units a. 0.35 b. 0.30 0.15 d. 0.40 15. Compute the contribution margin ratio a 0.40 b. 0.50 0.60 d. 0.30 16. Compute the break-even point in units a. 1,100,000 b. 560,000 1.142,857 d. 500,000 17. Compute the break-even point in dollars. a. $666,666.67 b. 5400,000 c. $450,000 d. $800,000 18. Compute the margin of safety ratio in dollars. (Round to the nearest full percent.) a. $1,200,000 b. $1,444,444.43 c. $1,750,000 d. $1,000,000 19. Compute the margin of safety ratio. (Round to the nearest full percent.) a. X33.34 b. X60 C70 d. 40 20. Determine the sales dollars required to earn net income of 51,000,000 a. $1,200,000 b. $1,000,000 $2,800,000 d. 52,000,000 12. the high-low method, what is the unit variable cost? Miles 80,000 50,000 March 70,000 90,000 ay February Total Cost $192,000 160,000 188,000 260,000 April $2.50 . $2.88 CS3.20 d. cannot be determined from the information given 13. In applying the high-low method, what is the fired cost? Month Miles Total Cost January 80,000 $192,000 February 50,000 160,000 March 70,000 188,000 April 90,000 260,000 a $100.000 b. $72,000 c. $28,000 d. $35,000 Use the following information for questions 14 and 20. AAA Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 70 cents per 35-ounce bottle to retailers, who charge customers 90 cents per bottle. For the year 2019, management estimates the following revenues and costs. Sales $2.000.000 Selling expenses variable $70,000 Direct materials 330,000 Selling expenses - Fixed 100,000 Direct labor 200,000 Administrative expenses variable 20,000 380,000 Manufacturing overhead variable Administrative expenses - fixed 100,000 200,000 Manufacturing overhead fixed & Dart, inc. makes and sells umbres. The company is in the process of preparings Selling and Administrative pense Budget for the last of the year. The slowing budget data are able Variable Cost Per Unt Sold Moeche cost Sales commissions 50.60 56,000 Shipping Advertising Executive staries 0.000 Depreciation on office equipment Other 015 Expenses are paid in the month incurred of the company has budgeted to 2.000 umbrellas in October, how much is the total budgeted vaatle seling and administrative expenses for October? 2516,800 b. $18.400 5101,600 d. $19,500 9. Pel Manufacturing is preparing to direct labor budget for May Projections for the month are that 33.400 units are to be produced and that director hours per unit of the labor cost per hour 512 what is the total bodited direct late cost for May 1.159.200 b. 1.180.000 c1,200.000 d 26.000 10. Strand Company is planning to 400 buckets and produce bude March. Each budrus 500 grams of the hour of doctor Plastic costs 530 per 500 and employed the com SIS hour Manufacturing overhead is op of soft tortor has of tory. How much as the total ofbedecor for at SOGO 56.000 d55.7000 IL Construction Contact eded for production in the post dhe edge 1. Why are budgets useful in the planning process? They provide management with information about the company's post performance b. They help communicate goals and provide a basis for evaluation They guarantee the company will be profitable if it meets its objectives d. They enable the budget committee to earn their paycheck 2. In many companies, responsibility for coordinating the presaration of the budget is assigned to a. the company's independent certified public accountants. b. a budget committee the company's internal auditors d. the company's board of directors. 3. The most common budget period is a one month b. three months cone year. d six months 4. The starting point in preparing the master budget is the a cash budget b. budgeted income statement sales budget d. direct materials budget 5. In order for budgets to be effective there must be: a. sound organizational structure. b. research and analysis c management acceptance of the budget program. d. all of the above 6. The AAA Company has 10,000 units in beginning finished goods. 1 sales are expected to be 80,000 units for the year and a desires ending finished goods of 10,000 units. how many units must AAA produce? a 57.000 b. 75,000 65,000 d. 60,000 7. The AAA Company has 5,000 units in beginning finished goods. The sales budget shows expected sales to be 12,000 units of the production budget shows that 11.000 units are required for production, what was the desired ending finished goods? a 1,000 b. 4.000 c5,000 d. 9,000