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Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 1) Which of the following costs change in total in direct proportion to a change in volume? A) period costs ) variable costs C) fixed costs D) mixed costs 2) The fixed costs per unit will A) Increase as production increases B ncrease as production decreases C) remain the same as production levels change D) decrease as production decreases 3) A 15% increase in production volume will result in a AD15% increase in total variable costs C) 15% increase in the variable cost per unit B) 15% increase in total administration costs D) 15% Increase in total mixed costs 4) Variable cost per unit, within the relevant range, will A) Increase as production decreases (B) remain the same as production levels change C) decrease as production increases D) decrease as production decreases 5) 5) Louis Petit, a manager of Doggone Gorgeous, Inc., was reviewing the water bills of a dog daycare and spa. He determined that its highest and lowest bills of $3800 and $2000 were incurred in the months of May and November, respectively. If 600 dogs were washed in May and 200 dogs were washed in November, what was the fixed cost associated with the company's water bill? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) (A) 51100 B) $1800 C) $2000 D) $3800 6) 6) The highest value of total cost was $70,000 in June for Acai Beverages, Inc. Its lowest value of total cost was $52,000 in December. The company makes a single product. The production volume in June and December were 13,000 and 7000 units, respectively. What is the variable cost per month? (Round your answer to the nearest cent.) A) $11.67 per unit B) $2.57 per unit ) $1.38 per unit (D) $3.00 per unit 1) 7) Choice Creations, Inc. sells hand sewn shirts at $58.00 per shirt. It incurs monthly fixed costs of $3000. The contribution margin ratio is calculated to be 30%. What is the variable cost per shirt (Round any Intermediate calculations and your final answer to two decimal places.) A) $17.40 per shirt B) $58.00 per shirt C) $75.40 per shirt D) $40.60 per shirt 8) Robusta Coffee Importers sold 7000 units in October at a sales price of $45 per unit. The variable costs 20 per unit. The monthly fixed costs are $8000. What is the operating Income earned in October B) $315,000 C) $140,000 D) $175,000 A) $167.000 9 9) Sunlight Design Corporation sells glass vases at a wholesale price of $4.50 per unit. The variable cost to manufacture is $1.75 per unit. The monthly fixed costs are $8500. Its current sales are 29,000 units per month. If the company wants to increase its operating Income by 20%, how many additional units must it sell? (Round any intermediate calculations to two decimal places and your final answer up to the nearest whole unit.) A) 34,182 glass vases B) 130,500 glass vases C) 8500 glass vases D) 5182 glass vases 10) 10) Martin was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier and started a small shop to make and sell Spanish guitars. The guitars sell for $900, and the fixed monthly operating costs are as follows: Rent and utilities Wages and benefits to luthier Other expenses $800 2000 474 Martin's accountant told him about contribution margin ratios, and Martin understood clearly that for every dollar of sales, 65% went to cover his fixed costs, and anything above that point was profit Martin wishes to earn 54000 of operating profit each month. Calculate the number of guitars Martin will need to sell to achieve the target profit. (Round your answer up to the nearest whole guitar) A) 4 guitars B) 3 guitars C) 12 guitars D) 13 guitars 11) 11) Zeke was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier and started a small shop to make and sell Spanish guitars. The guitars sell for $800, and the fixed monthly operating costs are as follows: Rent and utilities Wages and benefits to luthier Other expenses $100 2300 479 Zeke's accountant told him about contribution margin ratios, and Zeke understood clearly that for every dollar of sales, 75% went to cover his fixed costs, and anything above that point was pront. Zeke wishes to earn $5100 of operating profit each month. Calculate the amount of sales revenue required to achieve the target profit. (Round your answer to the nearest dollar.) A) 54639 B) $13,916 C) $34,316 D) 311,439 12) When the sales price per unit decreases, the contribution margin per unit A) increases B) increases proportionately C) remains the same D) decreases 13) Which of the following will lower the breakeven point? A) an increase in total fixed costs (B) an increase in the sales price per unit C) a decrease in the sales price per unit D) an increase in the variable cost per unit 14 14) Which of the following statements is TRUE if the variable cost per unit increases while the sales price per unit and total fixed costs remain constant? (A The breakeven point increases. B) The breakeven point decreases. C) The breakeven point remains the same D) The contribution margin increases