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Assume a company is considering adding a new product line with the following estimated cost and revenue data: $ Annual sales Selling price per unit

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Assume a company is considering adding a new product line with the following estimated cost and revenue data: $ Annual sales Selling price per unit Variable manufacturing costs per unit Variable selling costs per unit Incremental fixed manufacturing costs Incremental fixed selling costs Allocated common fixed administrative costs 6,000 units 180 $ 140 S 15 $65,000 per year $40,000 per year $ 45,000 per year If the new product line is added, the company expects that it will increase the sales of complementary products, thereby generating $31,000 in incremental contribution margin from those products. What is the financial advantage (disadvantage) of adding the new product line? Multiple Choice $45,000 O $75,000 $116.000 Assume that a company provided the following cost formulas for three of its expenses (where a refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $3,000 $4.000 $160 + $0.759 The company's planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. How much utilities expense would be included in the planning budget? Multiple Choice $1,585 O $1685 O $1,500 $1,660 Assume that the cost formula for one of a company's mixed expenses is $10,000+ $4.00 per unit. The company's planned level of activity was 2,000 units and its actual level of activity was 2,200 units. The actual amount of this expense was $18,060. The spending variance for this expense is: Multiple Choice $340 U. $740 $1,740 F. $1740 U. Assume the following information: Selling price Variable expense ratio Fixed expenses Unit sales Amount $ 30 808 $ 8,000 per month 3,400 per month How many units need to be sold to achieve a target profit of $17,050? Multiple Choice 4,175 units 1,022 units 2,842 units 6.245 units Assume that a company provided the following cost formulas for three of its expenses (where refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $3,000 $4.000 $160 + $0.750 The company's planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. How much utilities expense would be included in the planning budget? Multiple Choice O $1585 O $1685 $1,500 $1660 o Help Save & ENTE Assume that the cost formula for one of a company's mixed expenses is $10,000+ $4.00 per unit. The company's planned level of activity was 2,000 units and its actual level of activity was 2,200 units. The actual amount of this expense was $18,060. The spending variance for this expense is: Multiple Choice $340 u. $740 F $1,740 F. o $1,740 U Assume the following information: Selling price Variable expense ratio Fixed expenses Unit sales Amount $ 30 808 $ 8,000 per month 3,400 per month How many units need to be sold to achieve a target profit of $17,050? Multiple Choice O 4,175 units 1,022 units 2,842 units O 6,245 units

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