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Multiple Choice Questions Burger Bobs Boathouse sells only one product. 7,000 units were sold in year, resulting in $70,000 of sales revenue. Variable costs were
Multiple Choice Questions
- Burger Bobs Boathouse sells only one product. 7,000 units were sold in year, resulting in $70,000 of sales revenue. Variable costs were $28,000 for the year, and fixed costs were $18,000. The Break-even point in volume is:
- 3,000 units
- 2,797 units
- 2,000 units
- 7,000 units
- How many units would have to be sold to yield a target operating income of $20,000, assuming variable costs are $15 per unit, total fixed costs are $2,000, and the unit selling price is $20?
- 4,800 units
- 4,400 units
- 4,000 units
- 1,600 units
- Delta Merchandising, Inc., has provided the following information for the year just ended:
Net sales | $128,500 |
Beginning inventory | $24,000 |
Purchases | $80,000 |
Gross margin | $49,000 |
What was the ending inventory for the company at year-end?
- $65,450.
- $14,050.
- $24,500.
- $9,950.
- Gabel Inc. is a merchandising company. Last month, the company's merchandise purchases totaled $63,000. The company's beginning merchandise inventory was $17,000, and its ending merchandise inventory was $15,000. What was the company's cost of goods sold for the month?
- $61,000.
- $65,000.
- $63,000.
- $91,000.
- Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs were 50% of total unit costs. If 9,500 units are manufactured next month and cost behavior patterns remain unchanged, how will costs be affected?
- Total costs per unit will increase.
- Variable cost per unit will increase.
- Total cost per unit will decrease.
- Total variable costs will remain unchange
Multiple Choice Questions
- Burger Bobs Boathouse sells only one product. 7,000 units were sold in year, resulting in $70,000 of sales revenue. Variable costs were $28,000 for the year, and fixed costs were $18,000. The Break-even point in volume is:
- 3,000 units
- 2,797 units
- 2,000 units
- 7,000 units
- How many units would have to be sold to yield a target operating income of $20,000, assuming variable costs are $15 per unit, total fixed costs are $2,000, and the unit selling price is $20?
- 4,800 units
- 4,400 units
- 4,000 units
- 1,600 units
- Delta Merchandising, Inc., has provided the following information for the year just ended:
Net sales | $128,500 |
Beginning inventory | $24,000 |
Purchases | $80,000 |
Gross margin | $49,000 |
What was the ending inventory for the company at year-end?
- $65,450.
- $14,050.
- $24,500.
- $9,950.
- Gabel Inc. is a merchandising company. Last month, the company's merchandise purchases totaled $63,000. The company's beginning merchandise inventory was $17,000, and its ending merchandise inventory was $15,000. What was the company's cost of goods sold for the month?
- $61,000.
- $65,000.
- $63,000.
- $91,000.
- Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs were 50% of total unit costs. If 9,500 units are manufactured next month and cost behavior patterns remain unchanged, how will costs be affected?
- Total costs per unit will increase.
- Variable cost per unit will increase.
- Total cost per unit will decrease.
- Total variable costs will remain unchange
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