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Multiple Choice Questions [30 points] Based on each question below, use your best judgment to respond to all questions within the prompt. Partial credit will
Multiple Choice Questions [30 points] Based on each question below, use your best judgment to respond to all questions within the prompt. Partial credit will be provided for each prompt/question so be sure to include your thought processes in answers. To receive full credit for MC Questions, your calculations must be provided where applicable. 1. The Washington Daily News, Co. reports monthly sales of $70,000, variable costs of $31,500, and traceable fixed costs of $27,000. The contribution margin of this business unit is: A. 4,500 B. 43,000 C. 11,500 D. 38,500 2. AirHotel is a S&P 500 technology company that acts as an online platform for vacation rentals, earning 13% service revenues on each vacation rental. Jane Jones is the U.S. Division Manager and has full authority to make all decisions for the U.S. division. The CEO is currently debating how to effectively evaluates Jane Jones' productivity and efficiency. Which of the following is an appropriate management control system for evaluating and compensating Jane Jones? A. Jane Jones should be evaluated based on sales of the U.S. region; Jane Jones should be compensated based on a percentage of vacation rentals for the North American region. B. Jane Jones should be evaluated based on the number of vacation rentals of the North American region; Jane Jones should be compensated based on a percentage of vacation rentals for the North American region. C. Jane Jones should be evaluated based on sales of the North American region; Jane Jones should be compensated based on a percentage of vacation rentals for the U.S. region. D. Jane Jones should be evaluated based on sales of the U.S. region; Jane Jones should be compensated based on a percentage of vacation rentals for the U.S. region. 3. CBA Associates Inc. has a production budget with expected sales of $750,000 on 7,500 units for the 2022 budget year. CBA has $435,000 in beginning inventory and plans to have $375,000 in ending inventory ready for sale in 2023. What is the total required production units for CBA in 2022? A. 3,150 units B. 7,500 units C. 8,100 units D. 3,750 units 4. Which of the following is not an appropriate responsibility center for an organization? A. Revenue Centers B. Cost Centers C. Profit Centers D. Manufacturing Centers E. Investment Centers
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