leases a delivery truck from Burton Enterprises for a fee of $250 per month pla is evaluating the desirability of swisching to a modern, fucl-efficient tnuck, which can rlowe Conspany currently 0 per mile. Manage esed from Golath, la, fora fe of se00 per moerth plus so.05 per mile. All opernating co andful ae a. Goliath, Inc., is economically preferable to a lease from Burton Enterprises regardless of the monthly use. e Burton Enterprises is economically preferable to a lease from Goliath, Inc., regardless of the monihly use. incladed in the rental fees. In general, a lease from b. Burton Enterprises is econcenically preferable below 1,000 miles per month. d. Burton Enterprises is economically preferable above 1,000 miles per mooth. 9. Inventory valucs calculated using variable costing as opposed to absorption costing will generally be a. equal b. less. e. greater d. twice as much. 10. Which of the following statements is true? a. Joint costs are allocated to both main products and by-products b. Joint costs are allocated only to by-products c. Joint costs are not allocated because they cannot be attributed to specific units of output d. Joint costs are allocated only to main products 11. A regression analysis of total labor costs (y) based upon the number of visitors (x) for the Wacky World Theme Park, yielded a coefficient of S2.75 on the number of visitors. The p-value associated with that coefficient was 0.02 and the R2-.921. Based upon those results, we can conclude a. The coefficient on the number of visitors variable is statistically significant b. Visitors cause all labor costs c. The coefficient on the number of visitors variable is not statistically significant d. All of the above 12. Records indicate that average unit processing costs are $0.50 per account processed at an activity level of 32,000 accounts. When only 22,000 accounts are processed, the total cost of processing is $12,500. Given these data, at a budgeted level of 25,000 accounts: a. Processing costs are expected to total $8,750 b. Fixed processing costs are expected to be $10,400 c. The variable processing costs are expected to be $0.35 per account processed d. Processing costs are expected to total $13,000 13. At the break-even point of 1,500 units, variable costs are $60,000, and fixed costs are $30,000. What would operating income be if 1,501 units are sold? a. $20 b. $40 c. $90 d. $140