Question 3 : XYZ Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of employees be classified?

Question 4: For January, the cost components of a picture frame include $0.35 for the glass, $0.65 for the wooden frame, and $0.80 for assembly. The assembly desk and tools cost $400. A total of 1,000 frames is expected to be produced in the coming year. What would be the total costs? Question 5: ABC TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information provided to you: Sales (2,000 televisions) $900,000; total variable cost $400,000; Store manager's salary per year $70,000; utilities and rent costs per year $157,000; Advertising and promotion per year $15,000. What are the estimated total costs if ABC store expects to sell 3,000 units next year?

Question 6: Imagine you have a company that manufactures and sales wood tables. The following information provided to you: manufacturing costs is $90 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available now. Your company policy is to add a 50% markup (profit) to variable costs. Your company has received two order: 1. a close friend orders 10 tables. What is the lowest price per table you can give him? 2. A big school is currently expanding and has decided to furniture all new classes using the wood table. The school has order a large number of tables. What is the lowest price per table your company should give on this long-term order?

Question 7: ABC Corporation has a factory capacity of 100,000 units per month. Unit costs at this capacity are:

Current monthly sales are 95,000 units at $30.00 each. A buyer, has contacted ABC Corporation about purchasing 2,000 units at $24.00 each. Do you agree to give him/her at this price?