Managerial

1.

Murray Company provides the following information about its product: Operating income $330,000 Sales price per unit 438 Variable cost per unit 250 Total fixed costs 55,000 What is the total contribution margin? O A. $628,000 O B. $385,000 O C. $243,000 O D. $275,000If the sales price of Product X is $17.50 per unit and unit fixed cost is $9.00, its contribution margin per unit is $8.50. . . . . . O True O FalseYarn Basket, Lid., sells hand - knit scarves. Each scarf sells for $45. The company pays $150 to rent a vending space for one day. The variable costs are $11 per scarf. What total revenue amount does the company need to earn to break even? (Round any percentages to two decimal places and your final answer to the nearest cent.) O A. $45.00 O B. $14.56 O C. $198.52 O D. $10.20A small business produces a single product and reports the following data: Sales price $8.00 per unit Variable cost $5.00 per unit Fixed cost $21,000 per month Volume 10,000 units per month The company believes that the volume will go up to 12,000 units if the company reduces its sales price to $7.25. How would this change affect operating income? 0 A. It will increase by $3,000. 0 B. It will decrease by $9,000. 0 C. It will increase by $9,000. 0 D. It will decrease by $3,000. A small business produces a single product and reports the following data: Sales price $13 per unit Variable cost $11 per unit Fixed cost $196,000 per month Sales in units 110,000 units per month The company's fixed costs have gone up by $10,000 and the company does not believe the market can support raising the sales price. What will be the new break - even point in units (round to next whole unit). . . . . O A. 103,000 O B. 98,000 O C. 93,000 O D. 60,000For the next year, Sullivan & Co. predicts sales of 15,000 units of a product with a contribution margin of $7.00 per unit and 40,000 units of another product with a contribution margin of $9.00 per unit. The weighted - average contn'bution margin per unit is $8.45. 0 True 0 False Barnes Company sells two products, X and Y. For the coming year, Barnes predicts sales of 5,000 units of X and 10,000 units of Y. The contribution margins per unit of products X and Y are $5.00 and $4.00, respectively. The weighted - average contribution margin is $6.50 per unit. 0 True 0 False Last year, Dixon Company produced 12,600 units and sold 10,600 units. The company had no beginning inventory. Dixon incurred the following costs: Direct materials per unit $50 Direct labor per unit $20 Variable overhead per unit $16 Total xed manufacturing overhead $88,200 Total selling and administrative $7,000 Sales Price per unit $120 The cost per unit under absorption costing is O A. $34 0 B. $27 0 c. $93 0 D. $86