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1.If you produce 1,500 products and are operating your business at 80% capacity and receive a special order for 75 units, what will your remaining

1.If you produce 1,500 products and are operating your business at 80% capacity and receive a special order for 75 units, what will your remaining capacity be if you accept the special order?

a..300 products

b. 0 remaining capacity

c. 225 products

d. 375 products

2.

When determining which product to eliminate you would look to eliminate the product that has?

Question 2 options:

The lowest operating income

The highest variable expenses

The lowest contribution margin

The highest fixed costs

3.

If you produce 1,500 products and are operating your business at 80% capacity and receive a special order for 75 units, what will your remaining capacity be if you accept the special order?

Question 7 options:

300 products

0 remaining capacity

225 products

375 products

4.

Which business decision uses the target costing and cost plus pricing approaches?

Question 10 options:

Outsourcing

Discontinuing a product, department, or store

Pricing decisions

Special orders

5.

Dairyqueensells3sizesofblizzards-small,medium,andlarge.Forevery5sales2salesaresmall,1saleismedium,and2salesarelarge.FixedcostsforDairyQueenare$40,000.Usingtheinformationbelow,calculatetheweightedaveragecontributionmarginperblizzard.

Small Medium Large
SalesPriceperUnit $3.50 $4.00 $5.00
VariableCostperUnit $1.00 $1.75 $2.50

Question 18 options:

$2.50

$1.50

$2.45

$1.45

6.

If selling prices increase what is the impact on contribution margin and volume?

Question 20 options:

Decrease in contribution margin, increase in volume

Increase in contribution margin, decrease in volume

Decrease in contribution margin, decrease in volume

Increase in contribution margin, increase in volume

7.

Calculating target profit in units or dollars tells you which of the following

Question 21 options:

None of the above

How to achieve zero operating income

What your breakeven is in units or dollars

How many units you would need to sell, or how much sales revenue you would need to generate to achieve a target profit

8.

Calculate breakeven in dollars is sales price is $250, variable costs are $50, and fixed costs are $2,500.

Question 24 options:

$3,000

$3,250

$3,125

$2,500

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