Question
Wild Inc. sells organic sunscreen at the beach. Each tube of sunscreen costs $3.00 to purchase, and sells for $11.00. Wild Inc. also pays its
Wild Inc. sells organic sunscreen at the beach. Each tube of sunscreen costs $3.00 to purchase, and sells for $11.00. Wild Inc. also pays its sales staff a $0.50 commission for every tube that is sold. If sales are 16,000 tubes of sunscreen, the contribution margin income statement would show a total contribution margin of:
$120,000
$48,000
$176,000
$128,000
Assume that when you graduate you are offered two jobs. One job is in Las Vegas and will pay $35,000 per year. The other job is in Boulder, Colorado and will pay $33,000 per year. The $2,000 difference in the salaries represents:
a joint cost. | ||
a sunk cost. | ||
an irrelevant (not relevant) cost. | ||
an opportunity cost |
A Company makes all purchases on credit. April purchases were budgeted to be $60,000 and May purchases were budgeted at $80,000. Purchases are paid for 40% in the month of purchase and 60% in the month following the month of purchase. The budgeted balance sheet for May 31 would show accounts payable of:
$48,000 | ||
$36,000 | ||
$24,000 | ||
$72,000 |
Quick Inc. has prepared a planning budget for a volume of 15,000 units. On the planning budget rent is budgeted to be $30,000. The flexible budget prepared for an actual activity level of 20,000 units would have a value for rent of:
$15,000 | ||
$30,000 | ||
$35,000 | ||
$40,000 |
Action Inc. forecasts sales for May to be 400,000 units and has a policy that the ending inventory in any month should be 25% of the following months expected sales. The companys desired ending finished goods inventory for May has been determined to be 80,000 units. Budgeted production in units for the period is:
420,000 | ||
400,000 | ||
480,000 | ||
380,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started