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16. Kelchner Corporation has provided the following contribution format income statement. Assume that the following contribution information is within the relevant range. 180,000 108,000 72,000

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16. Kelchner Corporation has provided the following contribution format income statement. Assume that the following contribution information is within the relevant range. 180,000 108,000 72,000 Sales (3,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 9,600 What is the contribution margin ratio for Kelchner Corporation? Order? Why? 17. A breakfast cereal manufacturer would use what type of costing? Process or Job 8.Stauffer Corporation has provided the folowing contribution format income statement. Assume that the following information is within the relevant range. Sales (8,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 320,000 192,000 128,000 118,400 What is the variable expense ratio for Stauffer Corporation? 19. The Assembly Department started the month with 24,000 units in its beginning work in process inventory. An 1309,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 29,000 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month? 20. Carver Corporation produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed seling and administrative costs are S4 per unit. A selling com mission of 15% of the selling price is paid margin per unit? on each unit sold. What is the contribution 21. Hayworth Corporation has just segmented last years income statement into its ten product lines. The chief executive officer (CEO) is curious as to what effect dropping one of the product lines at the beginning of last year would have had on overall company profit. What is the best number for the CEO to look at to determine the effect of this elimination on the net operating income of the company as a whole? A) the product line's sales dollars B) the product line's contibution margin C) the product line's segment margin Di the product line's segment margin minus an allocated portion of common fixed expenses

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