5. Which of the following represents total variablecosts?
a. v
b. vX
c. f + vX
d. f
e. None of the answer choices is correct.
Exhibit 5-2
Manchester Company is a small company that has hired you to helpthem estimate costs. They present you with the followinginformation from the companyâs most recent fiscal year.
Sales (2,000 units) $1,000,000
Cost of goods sold (24% of sales) 240,000
Store supervisor's annual salary 65,000
Annual operating costs 70,000
Annual advertising and promotion 10,000
Sales commissions (5% of sales) 50,000
6. Refer to Exhibit 5-2. What was the variable cost perunit for the companyâs most recent fiscal year?
a. $120 per unit
b. $180 per unit
c. $145 per unit
d. $150 per unit
e. None of the answer choices is correct.
7. Refer to Exhibit 5-2. What are the estimated totalcosts if Manchester expects to sell 2,100 computers nextyear?
a. $439,500
b. $523,000
c. $460,000
d. $449,500
e. None of the answer choices is correct.
8. Refer to Exhibit 5-2. What type of cost estimationmethod is being used for Manchester?
a. Regression analysis
b. Scattergraph method
c. Account analysis
d. High-low method
e. None of the answer choices is correct.
9. Pacoâs Bikes sells 120 bicycles each month for $400per unit. Variable cost per unit is $160 and fixed costs total$4,800 per month. What is the contribution margin perunit?
a. $160
b. $280
c. $200
d. $240
e. None of the answer choices is correct.
5. Which of the following represents total variablecosts?
a. v
b. vX
c. f + vX
d. f
e. None of the answer choices is correct.
Exhibit 5-2
Manchester Company is a small company that has hired you to helpthem estimate costs. They present you with the followinginformation from the companyâs most recent fiscal year.
Sales (2,000 units) $1,000,000
Cost of goods sold (24% of sales) 240,000
Store supervisor's annual salary 65,000
Annual operating costs 70,000
Annual advertising and promotion 10,000
Sales commissions (5% of sales) 50,000
6. Refer to Exhibit 5-2. What was the variable cost perunit for the companyâs most recent fiscal year?
a. $120 per unit
b. $180 per unit
c. $145 per unit
d. $150 per unit
e. None of the answer choices is correct.
7. Refer to Exhibit 5-2. What are the estimated totalcosts if Manchester expects to sell 2,100 computers nextyear?
a. $439,500
b. $523,000
c. $460,000
d. $449,500
e. None of the answer choices is correct.
8. Refer to Exhibit 5-2. What type of cost estimationmethod is being used for Manchester?
a. Regression analysis
b. Scattergraph method
c. Account analysis
d. High-low method
e. None of the answer choices is correct.
9. Pacoâs Bikes sells 120 bicycles each month for $400per unit. Variable cost per unit is $160 and fixed costs total$4,800 per month. What is the contribution margin perunit?
a. $160
b. $280
c. $200
d. $240
e. None of the answer choices is correct.
Related questions
56. Refer to Exhibit 10-2. What is the standard cost per unitfor variable manufacturing overhead?
a. $16.00
b. $4.80
c. $1.44
d. $10.00
e. None of the answer choices is correct.
Exhibit 11-1
Ashville Company has two divisions â Bikes and Trikes.
Ashville Company | ||
Segmented Income Statements | ||
For the Current Fiscal Year Ended December31 | ||
Bikes Division | Trikes Division | |
Sales | $2,400,000 | $1,000,000 |
Cost of goods sold | 1,400,000 | 530,000 |
Gross margin | 1,000,000 | 470,000 |
Allocated overhead (from corporate) | 270,000 | 170,000 |
Selling and administrative expenses | 190,000 | 140,000 |
Operating income | 540,000 | 160,000 |
Income tax expense (40%) | 216,000 | 64,000 |
Net income | $ 324,000 | $ 96,000 |
56. Refer to Exhibit 11-1. Using the segmented incomestatements, what is the profit margin ratio for the Trikes Division(to the nearest tenth of a percent)?
a. 47%
b. 53%
c. 9.6%
d. 16.0%
e. None of the answer choices is correct.
57. Refer to Exhibit 11-1. Assume the Trikes Division hasaverage operating assets totaling $400,000 for the year. What isthe division's return on investment?
a. 19.2%
b. 40.0%
c. 90.0%
d. 24.0%
e. None of the answer choices is correct.
58. Refer to Exhibit 11-1. Assume the Trikes Division hasaverage operating assets totaling $400,000 for the year and thecompany's cost of capital rate is ten percent. What is the residualincome for the Trikes division?
a. $585,000
b. $1,380,000
c. $24,000
d. $120,000
e. None of the answer choices is correct.
