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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

  • $1,378,000

  • $1,749,000

  • $371,000

  • $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

  • $101,350

  • $128,550

  • $41,650

  • $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

  • 1,800 and 2,100

  • 6,000 and 8,143

  • 4,200 and 6,300

  • 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

  • $28,950

  • $9,750

  • $25,750

  • $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

  • 2,500

  • 27,500

  • 35,000

  • 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

  • $108.30

  • $105.65

  • $109.01

  • $105.30

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