QUESTION 16 Nate Murphy, the president of Murphy's Manufacturing Company, has asked for information about the cost behavior of manufacturing overhead costs Specifically, he wants to know how much overhead cost is fixed and how much data are the only records available: is variable. The following Month Machine-hours Overhead Costs February 1,700 $20,500 March 2,800 22,250 April 1,000 18,650 May 2,500 21,500 June 3,500 24,950 July 2,400 21,200 Using the high-low method the variable cost per machine hour is: $2.00 $4.00 $2.52 $1.60 QUESTION 20 Which of the following is true about the assumptions underlying basic CVP analysis? only selling price is known and constant o only selling price and variable cost per unit are known and constant only selling price, variable cost per unit, and total fixed costs are known and constant Selling price, variable cost per unit, Mixed cost per unit, and total fixed costs are known and constant QUESTION 21 Kenefic Company sells its only product for $9 perunk variable production costs are 83 per unit, and selling and administrative costs are $1.50 per unit, Fixed costs for 10,000 units are $5.000. The contribution margin: 56.00 per unit $4.50 per unit O $5.50 per unit $4,00 per unit QUESTION 29 Which of the following statements about determining the breakeven point is FALSE? Operating income is equal to zero. O Contribution margin-fixed costs is equal to zero. O Revenues equal the total of fixed costs plus variable casts. Breakeven revenues equal fixed costs divided by the variable cost per unit. QUESTION 30 Which of the following would decrease unit contribution margin the most? A 15% decrease in selling price. o A 13% increase in variable costs. A 13% decrease in variable costs. O A 15% decrease in fixed costs