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Assume the following information for a company that produced and sold 10,000 units during its first year of operations: Selling price Direct materials Direct labor
Assume the following information for a company that produced and sold 10,000 units during its first year of operations: Selling price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Per Unit Per Year $ 200 $ 74 $ 50 $ 12 $ 300,000 Using absorption costing, what is the company's unit product cost? Multiple Choice $166 $136 O O $156 O $124 Assume the following information: Selling price Variable expense ratio Fixed expenses Unit sales Amount $ 30 80% $ 8,000 per month 3,400 per month How many units need to be sold to achieve a target profit of $16,300? Multiple Choice 4,050 units 1,006 units 2,717 units 6,118 units If sales equal $384,800, variable expenses equal $200,000, and the degree of operating leverage is 14, then the net operating income is: Multiple Choice $14,286. $27,486. $13,200. $40,686. Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 41%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? Multiple Choice The total fixed expenses = $118,000 The variable expense per unit = $8.20 The total contribution margin = $82,000 The break-even point is 7,222 units
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