Question 62.5 pts

Direct materials cost that varies with the number of units produced is an example of a mixed cost of production.

Group of answer choices

True

False

Flag question: Question 7Question 72.5 pts

If a company is earning a profit, its fixed costs

Group of answer choices

are less than total contribution margin

are equal to total contribution margin

are greater than total variable costs

can be greater than or less than total contribution margin

All of the above

Flag question: Question 8Question 82.5 pts

Ingram Co. manufactures office furniture during 2006. During its most productive month, 3,500 desks were manufactured at a total cost of $84,400. In its slowest month, the company made 1,100 desks at a cost of $46,000. Using the high-low method of cost estimation, total total fixed costs during the year are:

Group of answer choices

$17,600

$28,400

$56,000

cannot be determined from the data given

Flag question: Question 9Question 92.5 pts

In the following graph, total variable costs are represented by

y A

| * D

| * *

| * *

| * *

| * *

| * *

| * *

| * *

| * *

B|*_________ __* __________________________________ C

| *

| *

| *

| *

|*______________________________________________

O E

Group of answer choices

the line BD

the line BC

the vertical distance between the lines OA and BD

the vertical distance between the lines BD and BC