# charter oak acc106 week 6 test part 1

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 . A semivariable cost: Answer

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Question 2

5 out of 5 points

 2. In order to calculate break-even sales units, fixed costs are divided by: Answer

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Question 3

0 out of 5 points

 3. In the area of cost-volume-profit analysis, the contribution margin ratio shows how much each dollar of sales contributes to: Answer

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Question 4

5 out of 5 points

 4. How will a company’s contribution margin be affected by an investment in equipment that increases fixed costs in order to achieve a reduction in direct labor cost? Answer

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Question 5

5 out of 5 points

 5. The dollar amount by which sales can decline before an operating loss is incurred is called the Answer

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Question 6

5 out of 5 points

 6. Variable costs would include Answer

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Question 7

5 out of 5 points

 7. If unit sales are \$5 and variable costs are \$2, how many units have to be sold to earn a profit of \$2,400 if fixed costs equal \$6,000? Answer

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Question 8

5 out of 5 points

 8. If unit sales are \$12, variable costs are \$7.20 per unit and fixed costs are \$24,000 what is the contribution ratio per unit? Answer

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Question 9

5 out of 5 points

 9. If unit sales are \$12, variable costs are \$7.20 per unit and fixed costs are \$24,000 what are the sales in dollars in order to break even? Answer

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Question 10

5 out of 5 points

Use the following to answer questions 10-12:

The following information is available regarding
the total manufacturing overhead of Allenby Company for a recent four-month
period.

 Machine Mfg. Hours Overhead April………………………………………………………………………… 80,000 \$162,000 May…………………………………………………………………………. 70,000 145,000 June…………………………………………………………………………. 100,000 190,000 July………………………………………………………………………….. 85,000 173,000

10. Refer to the
above information. Using
the high-low method, compute the variable element of manufacturing overhead
cost per machine hour.

Answer

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Question 11

5 out of 5 points

 11. Refer to the above information. Using the high-low method, compute the fixed element of Allenby’s monthly overhead cost. Answer

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Question 12

5 out of 5 points

 12. Refer to the above information. Allenby’s projected August operations will require approximately 110,000 machine hours. Using the high-low method, compute total manufacturing overhead estimated for August. Answer

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Question 13

0 out of 5 points

 13. A company with an operating income of \$72,000 and a contribution margin ration of 56% has a margin of safety of: (please round to the nearest dollar amount) Answer

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Question 14

0 out of 5 points

 14. Circle Company produces a single product which it sells for \$84 a unit. If the fixed costs of manufacturing and selling the product are \$64,200 a month and the variable costs are \$52 a unit: Answer

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Question 15

5 out of 5 points

15. The following
information is available:

 Sales………………………………………………………………………… \$90,000 Break-even sales……………………………………………………….. \$50,000 Contribution margin ratio………………………………………………. 25%

What
is the operating income?

Answer

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