5. Which of the following represents total variable costs?

a. v

b. vX

c. f + vX

d. f

e. None of the answer choices is correct.

Exhibit 5-2

Manchester Company is a small company that has hired you to help them estimate costs. They present you with the following information from the companys most recent fiscal year.

Sales (2,000 units) $1,000,000

Cost of goods sold (24% of sales) 240,000

Store supervisor's annual salary 65,000

Annual operating costs 70,000

Annual advertising and promotion 10,000

Sales commissions (5% of sales) 50,000

6. Refer to Exhibit 5-2. What was the variable cost per unit for the companys most recent fiscal year?

a. $120 per unit

b. $180 per unit

c. $145 per unit

d. $150 per unit

e. None of the answer choices is correct.

7. Refer to Exhibit 5-2. What are the estimated total costs if Manchester expects to sell 2,100 computers next year?

a. $439,500

b. $523,000

c. $460,000

d. $449,500

e. None of the answer choices is correct.

8. Refer to Exhibit 5-2. What type of cost estimation method is being used for Manchester?

a. Regression analysis

b. Scattergraph method

c. Account analysis

d. High-low method

e. None of the answer choices is correct.

9. Pacos Bikes sells 120 bicycles each month for $400 per unit. Variable cost per unit is $160 and fixed costs total $4,800 per month. What is the contribution margin per unit?

a. $160

b. $280

c. $200

d. $240

e. None of the answer choices is correct.