please explain the following MCQs.

1. If total costs are $80,000 at an output of 12,000 units and $95,000 at 15,000 units, fixed costs are:

Select one:

A. $15,000.

B. $5,000.

C. $20,000.

D. $10,000.

2. Sales Extraordinaire sells one particular photo frame. It estimates that it can sell as many frames as it produces.

Sales price per unit $5.00

Variable cost per unit $2.00

Fixed costs per annum $9,000

Refer to the table above. The sale of 5,000 photo frames would result in:

Select one:

A. a loss of $2,000.

B. a loss of $3,000.

C. a profit of $5,000.

D. a profit of $6,000

3. Unique Tables manufacture coffee tables made of recycled timber. Market research has suggested that there will be strong demand for the tables. Due to this, management is debating whether to lease a new turning machine to meet increased production. To assist in their decision-making, the management accountant has supplied the following information:

WithoutWith

turning machineturning machine

Expected level of sales1,500 units1,500 units

Sales price per unit$150$150

Variable costs per unit$120$110

Fixed costs$7,500$15,000

Refer to the table above. As the level of sales increases above 1,500 units, the level of profit would increase:

Select one:

A. at a faster rate with the turning machine.

B. at the same rate with or without the turning machine.

C. at a faster rate without the turning machine.

D. none of the above.

4. Wombat World is a small zoo displaying native animals. The entrance fee is $15 per person. Variable costs of running the zoo are $8 per visitor and fixed costs are $200,000 per annum. The number of visitors that would be needed to make a profit of $20,000 per annum is:

Select one:

A. 27,500.

B. 31,429.

C. 1,333.

D. 14,667.

5. Screen Saver Industries has spare production capacity due to the cancellation of a customer order. An overseas retail chain has offered the business an order for 300 units at a price of $25 each. The variable cost of the units is $20 each and the fixed costs are $3 per unit. What will be the impact on Screen Savers profit if the special order is accepted?

Select one:

A. $1,500 increase.

B. $600 increase.

C. $600 decrease.

D. $1,500 decrease.

Computers Expertise Ltd provides three services, the details for which are as follows:

BasicSecretarialExpert

Sales price per unit$20$30$50

Variable cost per unit$10$12$15

(paper, transport, etc.)

Labour time per unit1 hour2 hours5 hours

Annual fixed costs$20,000 total

The demand for all service is unlimited. The ability to provide the service is limited by the availability of qualified staff and therefore the labour time available.

Refer to the table above. Which product is the most profitable?

Select one:

A. Secretarial, because it is the most enjoyable for staff.

B. Basic, because it provides the highest dollar contribution per labour hour.

C. Expert, because it has the highest contribution margin.

D. Expert, because it has the highest sales price