Question
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
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