1.Using account analysis, what type of cost is the monthly cost of a storage locker used for holding old records?

A. Fixed

B. Variable

C. Step

D. Mixed

2.Brittany Furniture manufactures two products: Couches and Beds. The following data are available:

	Couches	Beds
Sales price	$500.00	$700.00
Variable costs	$350.00	$375.00

The company can manufacture two couches per machine hour and one bed per machine hour. The company's production capacity is 900 machine hours per month.

What is the contribution margin per machine hour for beds?

A. $325

B. $1,075

C. $650

D. $975

3.Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is currently produces and sells 75,000 seats per year. The following information relates to current production of seats:

Sale price per unit	$400
Variable costs per unit:
Manufacturing	$220
Marketing and administrative	$50
Total fixed costs:
Manufacturing	$750,000
Marketing and administrative	$200,000

4.If a special sales order is accepted for 6,500 seats at a price of $325 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

A. Increase by $2,112,500

B. Increase by $357,500

C. Decrease by $357,500

D. Increase by $5,500,000

5.When predicting costs at other volumes using a cost equation derived from either the

high-low method or regression analysis, managers should consider?

A. seasonality.

B. general inflation.

C. outliers.

D. all of the above.