Question 3

A company makes and sells a single product. For each unit of product, the company has a contribution of 77.50 per unit. Total fixed costs in the business are 32,500. What is the total number of units that the company needs to produce and sell to obtain a target profit of 45,000?

A. 100

B. 1,000

C. 1,500

D. 2,500 Question 4

Consider the following three statements concerning management accounting. 1. The main role of the management accountant is to produce financial accounts. 2. Management accountants always work within the finance function. 3. Management accountants always work in partnership with business managers. Which of the following combinations (true/false) is correct?

A. 1 and 2 true, 3 false

B. 2 and 3 true, 1 false

C. 1 and 3 true, 2 false

D. None of the above Question 5

Which of the following is an example of semi variable costs?

A. The salary of the supervisor in a companys department.

B. The total costs of the materials used in the production process.

C. The electricity costs.

D. The insurance premium for an asset