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Need help with numbers 22,24,26,27. Show work please. Thanks. 22. Price is $10 per unit, variable costs are $4 per unit, and fixed costs are

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Need help with numbers 22,24,26,27. Show work please. Thanks.

22. Price is $10 per unit, variable costs are $4 per unit, and fixed costs are $8 per unit (at current sales volume). How much will the profit change in the short term if sales volume is increased by 10 units? (the new volume is in the relevant range) A. decrease by $20 B. increase by $20 C. increase by $60 D. increase by $100 E. not enough information 23. Which of the following items are likely to be classified as manufacturing overhead for Toyota? A. salaries of production labor supervisors B. cost of engines and transmissions used in production C. fire insurance premium for the factory D. all of the above E. A and C 24. AB Company has two customers, A and B. Each customer buys 100 units per month at a price of $10 per unit. The variable costs are $4 per unit. The company uses an activity-based costing (ABC) system with 3 pools to allocate capacity costs among customers. Activity Activity Rate Customer A Customer B Processing of orders $5/order 6 orders 12 orders Technical support $10/call 4 calls 20 calls Product handling $1.50/unit 100 units 100 units Compute the profit margin for customer A. A. not enough information - need to know customer-level contribution margin B. $220 C. $380 D. $780 E. $1,000 25. When a firm is facing excess supply i.e., demand is less than capacity), which of the following is a reasonable course of action to consider? A. Reduce prices B. Use all available capacity to make the product with the highest CM per unit of capacity C. Increase advertising D. All of the above are reasonable E. A and C are reasonable 26. Actual sales volume in units is 20% higher than budgeted. Actual sales price is 2% lower than budgeted. Actual sales revenue is 17.6% higher than budgeted. Actual input quantity per unit is 10% higher than budgeted. Actual input price is 1% lower than budgeted. Which of the following statements is true: A. Sales price variance is favorable and input price variance is favorable B. Sales price variance is favorable and input price variance is unfavorable C. Sales price variance is unfavorable and input price variance is favorable D. Sales price variance is unfavorable and input price variance is unfavorable E. Not enough information - need to know the revenue budget and the cost budget 27. Suppose that production managers and sales managers successfully manipulated the budgeting process to their advantage. Which of the following statements is true: A. sales volume variance is favorable and input efficiency variance for DM is unfavorable B. sales volume variance is favorable and input efficiency variance for DM is favorable C. sales volume variance is unfavorable and input efficiency variance for DM is unfavorable D. sales volume variance is unfavorable and input efficiency variance for DM is favorable E. trick question -- low-level managers cannot manipulate the budgeting process

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