Assingnment
Question 1 (1 point)
Thomas Train has collected the following information over the last six months.
| Month | Units produced | Total costs |
| March | 10,000 | $25,600 |
| April | 12,000 | 26,200 |
| May | 20,000 | 27,600 |
| June | 13,000 | 26,450 |
| July | 12,000 | 26,000 |
| August | 15,000 | 26,500 |
Using the high-low method, what is the variable cost per unit?
Question 2 (1 point)
Rooter’s Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:
| January | February | March | April | May | June | July | |
| Number of rooms cleaned | 250 | 160 | 200 | 150 | 270 | 170 | 260 |
| Cleaning cost | $6,450 | $4,060 | $5,100 | $4,100 | $6,640 | $4,200 | $6,530 |
How much are estimated monthly variable costs using the high-low method?
Question 3 (1 point)
A cost is $3,600 at 1,000 units, $7,000 at 2,000 units, and $9,200 at 3,000 units. This cost is a
Question 4 (1 point)
Winny’s Office Furniture has a contribution margin ratio of 16%. If fixed costs are $192,800, how many dollars of revenue must the company generate in order to reach the break-even point?
Question 5 (1 point)
Tim Taylor has written a self improvement book that has the following cost characteristics:
| Selling Price | $16.00 per book |
| Variable cost per unit: | |
| Production | $4.00 |
| Selling & administrative | 2.00 |
| Fixed costs: | |
| Production | $97,600 per year |
| Selling & administrative | 19,200 per year |
How many units must be sold to break-even?
Question 6 (1 point)
The use of fixed cost to increase profits at a rate faster than sales increase is called:
Question 7 (1 point)
Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $90, unit variable cost is $45, and the fixed costs per month are $5,000. The margin of safety is:
Question 8 (1 point)
Which of the following statements about the relevant range is true?
