QUESTION 15

1. Kiwi Company incurred $45,000 of fixed cost and $60,000 of variable cost when 5,000 units of product were made and sold.

   If the number of units sold doubles, the cost per unit will:

   	A.	increase but will not double.
   	B.	decrease.
   	C.	double as well.
   	D.	stay the same.

6 points

QUESTION 16

1. Super Duper Company sells one product that has a sales price of $25 per unit, variable costs of $20 per unit, and total fixed costs of $250,000. What is the amount of sales volume in dollars necessary to attain a desired profit of $100,000?

   	A.	$1,250,000
   	B.	$70,000
   	C.	$1,750,000
   	D.	$437,500

8.71 points

QUESTION 17

1. Dob Bylan Company sells two products. The following information is provided:

   	Product A				Product B
   Unit selling price	$	150			$	250
   Unit variable cost	$	75			$	100
   Number of units produced and sold		25,000				75,000

   What is the weighted average contribution margin per unit?

   	A.	$112.50
   	B.	$75.00
   	C.	$131.25
   	D.	$125.75

8.72 points

QUESTION 18

1. Willy Wonka Company manufactures candy bars. The following were among Willy Wonka's manufacturing costs during the current year:

   Wages
   Operators of machines	$	500,000
   Selling and administrative personnel	$	125,000
   Materials used
   Materials used to clean the machinery	$	40,000
   Raw materials used to make the candy	$	310,000
   Packaging materials	$	190,000

   Willy Wonka's direct labor costs amounted to:

   	A.	$1,165,000
   	B.	$125,000
   	C.	$500,000
   	D.	$625,000