If fixed costs are $200,000 and variable costs are 60% of the selling price, the break-even point in sales dollars is:

a.

$800,000

b.

$333,333

c.

$200,000

d.

$500,000

Division B has a divisional contribution of $250,000. After the allocation of $180,000 of common costs,it is making a profit of $70,000. Assuming all other factors are equal, if the division were closed, the effect on the overall profit of the organisation would be:

a.

a decrease of $180,000.

b.

a decrease of $250,000.

c.

an increase of $70,000.

d.

an increase of $180,000.

Direct material costs $52.00 per unit of product

Costs of machining $23.50 per machine hour

Costs of packing $8.50 per carton packed

What is the total full cost of an order for 6,000 units of product KIT05 which will use 92 machine hours and 64 cartons?

a.

$312,000

b.

$247,400

c.

$314,706

d.

$856,000