towards low-volume products A) True B) False 0. Mossfeet Shoe Company is a single product firm. Mossfeet is predicting that an increase in advertising (fixed expense) next year will double sales, but will not alter variable costs per unit or sales price per unit. What effect would this advertising increase have on the following items for next year? Contribution Break-even Margin Ratio Point A) B) C) No effect Increase Decrease Increase Increase No effect D) No effect No effect 11. Shipping costs at Columbia Mining Company are a mixture of variable and fixed components The company shipped 8,000 tons of coal for $400,000 in shipping costs in February and 10,000 tons for $480,000 in March Assuming that this activity is within the relevant range, expected shipping costs for 11,000 tons would be (hint: don't forget the fixed portion of this cost!) A) S544,500 B) $512,000 C) $520,000 D) $440,000 12. Under absorption costing, fixed manufacturing overhead is A) immediately expensed as a period cost. B) included as a product cost. C) ignored. D) carried in a liability account. Radakovich Corporation has provided the following data from its activity-based costing system 13. Total Activity Total Cost $436,240 24,000 machine-hours Activity Cost Pool Assembly.. Processing orders... $60,896 1,600 orders Inspection.$82,767 1,410 inspection-hours What is the activity rate for the Assembly activity (round to the nearest cent)? A) $17.45/MH B) $58.40/inspection hour C) S38.06/order D) $18.18/MH