Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mark uses the high-low method to estimate total monthly overhead costs for his auto garage. He uses service hours as the overhead cost driver. Data
Mark uses the high-low method to estimate total monthly overhead costs for his auto garage. He uses service hours as the overhead cost driver. Data for the following months are shown below: Maintenance_hours Total_maintenance costs Jan. 120 $500 Feb. 80 $480 Mar. 140 $640 Apr. 160 $600 Using the high-low method, the total variable costs per maintenance hour are: $5.00. $1.50. $2.50. O $4.40. Alex sells Ice cream cones. He sells each cone for $2. Variable costs per unit are $1.75 and total fixed costs are $80. To make a profit of $145, she must sell this number of units: 200 units. O 500 units. O 750 units. 300 units. Adam uses the high-low method to estimate total monthly maintenance costs for his Rock & Soil company. He uses maintenance hours as the cost driver. Data for several months are shown: Maintenance_hours Total_maintenance costs Jan. 100 $500 Feb. 80 $480 Mar. 120 $640 Apr. 160 $600 Based on the high-low method, the total fixed costs are $500. $150. $360. $180. Tina sells Ice cream cones. She sells each cone for $2. Variable costs per unit are $1 and total fixed costs are $100. If she projects that she will sell 150 cones this summer, what is her margin of safety in dollars? $160. O $100. $300. $160. A product should be processed further if additional costs of further process are less than the additional revenues after further process. O True. False. Doug sells Ice cream cones. This summer, he sells each cone for $2. His variable costs amount to $0.75 each; total fixed costs are $80. Based on this information, his breakeven point in dollars is: $140. $128. $200. $75. The production capacity for SG company is 1400 units for this period. At the outset, the sales dept. generated a sales order of 1200 units. Price and cost data for the company are as follows: Unit selling price is $12, unit variable cost is $4, and total fixed costs are $5000. In the same period, the company received request for special orders for 150 units at $6 each. If SG accepts the special order, the result would be: $40 increase in profits. $40 decrease in profits. $300 increase in profits. $350 decrease in profits. MJ has capacity to produce 1400 units of X. The unit selling price of X is $12, unit variable cost is $4, and total fixed costs are $5000. During this period, MJ generated a sales order of 1300 units. Meantime, MJ has received a request for special order of 120 units at $6 each. If MJ accepts the order, profits would: O Increase by $80. O Decrease by $240. Increase by $60. Decrease by $100. Maggie Corp. has a selling price of $20 per unit, variable costs of $10 per unit, and fixed costs of $140,000. How many units must be sold to earn $50,000 profits? O 19,000. 24,000. 35,000. 2,334
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started