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.

Dairy queen sells 3 sizes of blizzards - small, medium, and large. For every 5 sales 2 sales are small, 1 sale is medium, and 2 sales are large. Fixed costs for Dairy Queen are $40,000. Using the information below, calculate the weighted average contribution margin per blizzard.

	Small	Medium	Large
Sales Price per Unit	$3.50	$4.00	$5.00
Variable Cost per Unit	$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