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 18,000 28,400
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?
Your Answer:
Question 1 option:
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 $6,760 $4,200 $6,530
How much are estimated monthly variable costs using the high-low method?
Answer:
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Question 4 (1 point)
Winny’s Office Furniture has a contribution margin ratio of 16%. If fixed costs are $190,800, how many dollars of revenue must the company generate in order to reach the break-even point?
Your Answer:
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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 $96,600 per year
Selling & administrative 19,800 per year
How many units must be sold to break-even?
Your Answer:
Question 5 options:
Question 7 (1 point)
Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $80, unit variable cost is $30, and the fixed costs per month are $5,000. The margin of safety in terms of sales revenue is:
Your Answer:
Question 7 options:
