Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that sales are predicted to be $11,250, the expected contribution margin is $4,500, and a net loss of $750 is anticipated. The break-even point

image text in transcribed
image text in transcribed
Assume that sales are predicted to be $11,250, the expected contribution margin is $4,500, and a net loss of $750 is anticipated. The break-even point in sales ($) is: Select one: a. 13,125 O b. 12,000 O c. 6,250 O d. 8,750 e. 9,375 XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$150,000 + $ 10XDLH; R-square = 0.11]; [Y= $190,000 + $5xMhr; R-square = 0.95); [Y=200,000+2Q; R-square=0.52). Based on this information, which cost driver do you recommend? Select one: a. Quantity produced (Q) O b. All cost drivers are the same O c. Machine hours (Mhr) d. None of them e. Direct labor hours (DLH)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting An Introduction

Authors: Eddie McLaney, Dr Peter Atrill, Eddie J. Mclan

5th Edition

0273733206, 978-0273733201

More Books

Students also viewed these Accounting questions

Question

What is the cerebrum?

Answered: 1 week ago

Question

Describe five organizational development techniques.

Answered: 1 week ago

Question

Explain the two dimensions of an organizations culture.

Answered: 1 week ago

Question

State why people resist change and how to overcome resistance.

Answered: 1 week ago