Question
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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