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One advantage of the management-by-exception approach is that it ___ A) frees managers from needless concern over operations that adhere to plans B) allows managers to ignore problem situations C) allows managers to ignore day-to-day operations D) allows managers to ignore aspects of the business outside their area of expertise Cherry Wood Company sells desks at $480 per desk. The variable costs are $372 per desk. Total fixed costs for the period are $436, 840. The contribution margin ratio is ___ A) 77.5% B) 29.0% C) 22.5% D) 40.6% HugME Company produces dolls. Contribution margin is $6.00 per unit and fixed costs for the period are $35,000 What is the break-even point in units? A) 72, 500 B) 31, 071 C) 51, 176 D) 21, 750 Assume the following facts: How many units must be sold to achieve the targeted net income? A) 963 B) 513 C) 629 D) 1, 155 The cost of using the telephone, which involves a flat rate per month plus a fee for every local and long-distance would be a ___ cost. A) fixed B) mixed C) variable D) step When managers graph a linear cost function with one cost driver, the intercept represent the ___ cost and slope represents the ___cost. A) variable; fixed B) fixed; mixed C) variable; mixed D) fixed; variable