1.Jackson Furniture Company provided the following manufacturing costs for the month ofJune:

Direct labor costs

$130,000

Direct materials costs

63,000

Equipment depreciation (straightline)

24,000

Factory insurance

10,300

2.An assumption of CVP analysis is that managers can_______.

A.

classify costs asvariable, fixed, or mixed

B.

assume that total variable costs do not change

C.

adjust fixed costs as needed

D.

only consider variable costs are relevant

Factorymanager's salary

10,100

Janitor's salary

14,400

Packaging costs

18,500

Property taxes on the factory

16,500

From the aboveinformation, calculateJackson's total fixed costs.

A.

$60,900

B.

$75,300

C.

$286,800

D.

$65,000

3.Jackson Coats sold 7,700 coats in October at a sales price of $145 per coat. The variable cost is $106 per coat. The monthly fixed costs are $3,100. What is the operating income earned inOctober?

A. 297K

B.515.9K

C.300.3K

D.303.400K

4.Research has shown that costs are asymmetrical to change in sales volume.

TRUE OR FALSE