MANAGERIAL ACCOUNTING

Maxim Company incurred $70,000 (S30,000 of total fixed cost and S40,000 of total variable cost) when 1,000 units of a given product were produced. If 2,000 units are made, the company's total cost will be: A. S100,000 B. $110,000 C. S130,000 D. S140,000 7. Frank Company operates a cafeteria for its employees. The number of meals served each month over the last six months, and the total costs of operating the cafeteria are given below onh leals served Cafeteria cos 500 600 1,450 I .200 650 $4,800 5,080 $4,900 $4,000 S5,100 $5.400 Feb Mar May un Using the high-low method of analysis, estimate the "b" and a" in the equation Y = a + b X. [X is meals served and Y is cafeteria costs]. (4) b= (ii) a= (iii) If 1,400 meals are served, fixed cost will be: S (i) If1,000 meals are served, the cafeteria costs will be: 8. Jones has a contribution margin ratio o that: f 30%. This means a. contribution margin must be 30% of income. B. fixed costs must be 70% of sales. c, variable costs must be 70% of sales. D, fixed costs must be 30% of income. variable costs must be 30% of