Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HELP ASAP! PLEASE ANSWER ALL PARTS TO RECEIVE A THUMBS UP RATING, THANK YOU! 1. Pigwidgeon Company charges a selling price of $30 per unit

HELP ASAP! PLEASE ANSWER ALL PARTS TO RECEIVE A THUMBS UP RATING, THANK YOU!

1. Pigwidgeon Company charges a selling price of $30 per unit for its single product, incurs variable costs of $14 per unit, and total fixed costs of $280,000.

What unit sales volume is necessary to earn a net income before tax of $40,000?

a. 17,500

b. 19,469

c. 20,000

d. 21,000

e. None of the above

2. All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product:

Assuming that machine hours are limited (i.e., this is the constrained resource), which model is the most profitable to produce?

a. Model A

b. Model B

c. Model C

d. Model A and B would be equally profitable

e. Model B and C would be equally profitable

3. DJH Enterprises has 3 departments. Operating results for 2019 are as follows:

DJH is considering eliminating the departments that show losses. Assume that the direct fixed expenses could be avoided if the department is eliminated.

What effect would elimination of Department 2 have on DJHs total operating income?

a. It would increase total operating income by $22,000

b. It would increase total operating income by $30,000

c. It would decrease total operating income by $35,000

d. It would decrease total operating income by $8,000

e. It would decrease total operating income by $5,000

4. Variable costing is required by GAAP for publicly reported financial results.

True

False

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

Introduction To Financial Accounting Multiple Choice Questions

Authors: George Fossi Kamga

1st Edition

6205912481, 978-6205912485

More Books

Students also viewed these Accounting questions

Question

Distinguish between formal and informal reports.

Answered: 1 week ago