Which cost structure is more beneficial to an organization during a period of falling sales?

Question 1 options:

A cost structure with a higher amount of variable costs relative to fixed costs.

Does not matter because all cost structures are equal.

A balanced cost structure where variable costs are equal to fixed costs.

A cost structure with a lower amount of variable costs relative to fixed costs.

Question 2

The following data pertains to activity and costs for two months:

JuneJulyNumber of units6,0008,000Variable expenses$15,000$20,000Fixed expenses$30,000$30,000Mixed expenses$24,000$39,000Total expenses$75,000$89,000

Assuming these activity levels are within the relevant range, what were the mixed costs for July?

Question 2 options:

$39,000

$32,000

$20,00

$30,000

Question 3

Which of the following is an example of an investment centre found in a national retailing firm?

Question 3 options:

Human resources department

Corporate headquarters

Product category

Sales territory (west, central, east)

None of these

Question 4(2 points)

Last year sales = $250,000, operating income = $80,000, and average operating assets were $500,000. What was the return on investment for last year?

Question 4 options:

32%

3.13

16%

2

Question 5

Which of the following statements is correct regarding traceable and common fixed expenses?

Question 5 options:

Traceable fixed expenses are arbitrarily assigned to business segments.

Common fixed expenses are controllable by the segment.

Total fixed expenses include all traceable fixed and some common fixed expenses.

Traceable fixed expenses are used to calculate segment margin.

Question 6

BJ Co. has reported the following information for 2019:

Unit sales1,500Sales price per unit$80.00Variable expense per unit$60.00Fixed expense$125,000

What is the Contribution Margin ratio?

Question 6 options:

25%

$30,000

$90,000

75%

Question 7

Which of the following changes will decrease a company's return on investment?

Question 7 options:

Sales decrease while all other expense items are unchanged.

Operating expenses decrease.

Net operating income increases.

Decrease average operating assets.