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Larry Company makes and sells 2 models of dishwashers, Model ABC and Model XYZ. For every 2 Model ABC sold, 3 Model XYZ are sold
Larry Company makes and sells 2 models of dishwashers, Model ABC and Model XYZ. For every 2 Model ABC sold, 3 Model XYZ are sold Larry Company incurs $1,120,000 in fixed costs per month. The following information is also provided Model ABC Model XYz Sales per unit Variable Cost per unit CM per unt $450 $250 $200 $700 300 $400 How many units of Model XYZ would the company need to sell at its breakeven point OA. 2.100 units OB, 3.500 units O C. 2.240 units O D. 3,733 units Which of the following best describes "target costing"? O A. An approach to pricing that begins with revenue at market price and subtracts desired profit to arrive at target total cost O B. An approach to pricing that begins with the product's total cost and adds desired profit O C. A factor that restricts production or sales of a product O D. All costs incurred along the value chain in connection with the product or service By multiplying the operating leverage factor by the anticipated percentage change in volume, one can find A. the anticipated change in sales revenue B. the anticipated change in fixed expenses. C. the anticipated change in contribution margin. O D. the anticipated change in operating income Which of the following is NOT a benefit of budgeting? OA. Budgeting provides a benchmark to help managers evaluate performance O B. Budgeting forces managers to work in a silo, promoting only the goals of their department O C. Budgeting provides a benchmark that motivates employees O D. Budgeting forces managers to consider relations across the value chain
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