Question
Derst Incorporated sells a particular textbook for $26. Variable expenses are $19 per book. At the current volume of 53,000 books sold per year the
Derst Incorporated sells a particular textbook for $26. Variable expenses are $19 per book. At the current volume of 53,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:
Multiple Choice
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$1,378,000
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$1,749,000
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$371,000
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$1,007,000
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Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $47,700 for Division A. Division B had a contribution margin ratio of 35% and its sales were $231,000. Net operating income for the company was $27,200 and traceable fixed expenses were $59,700. Corbel Corporation's common fixed expenses were:
Multiple Choice
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$101,350
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$128,550
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$41,650
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$59,700
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Mio Canoe Livery rents canoes and transports canoes and customers to and from their canoe trip on a local river. The trip is priced at $20 per person and has a CM ratio of 30%. Mio's fixed expenses are $84,000. Last year, sales were $400,000 and profit was $36,000. How many units need to be sold to break-even, and how many need to be sold to earn a profit of $42,000?
Multiple Choice
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1,800 and 2,100
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6,000 and 8,143
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4,200 and 6,300
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14,000 and 21,000
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Dake Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows:
Average Cost per Unit | |
---|---|
Direct materials | $ 7.15 |
Direct labor | $ 3.40 |
Variable manufacturing overhead | $ 1.95 |
Fixed manufacturing overhead | $ 3.20 |
Fixed selling expense | $ 0.85 |
Fixed administrative expense | $ 0.55 |
Sales commissions | $ 0.65 |
Variable administrative expense | $ 0.55 |
If 5,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:Multiple Choice
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$28,950
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$9,750
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$25,750
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$19,200
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Question 22 of 40 Total22 of 40
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Corporation X sold 25,000 units of product last year. The contribution margin per unit was $2, and fixed expenses totaled $40,000 for the year. This year fixed expenses are expected to increase to $45,000, but the contribution margin per unit will remain unchanged at $2. How many units must be sold this year to earn the same net operating income as was earned last year?
Multiple Choice
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2,500
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27,500
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35,000
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22,500
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At an activity level of 8,500 machine-hours in a month, Falks Corporations total variable production engineering cost is $748,850 and its total fixed production engineering cost is $177,760. What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 8,800 machine-hours in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)
Multiple Choice
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$108.30
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$105.65
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$109.01
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$105.30
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