Question 1 (1 point) Question 1 UnsavedThomas Train has collected the following information over the last six months.Month Units produced Total costsMarch 10 000 $25 600April 12 000 26 200May 19 800 28 000June 13 000 26 450July 12 000 26 000August 15 000 26 500Using the high-low method what is the variable cost per unit?Your Answer:Question 1 options:AnswerSaveQuestion 2 (1 point) Question 2 UnsavedRooter’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 JulyNumber of rooms cleaned 250 160 200 150 285 170 260Cleaning cost $6 450 $4 060 $5 100 $4 100 $6 760 $4 200 $6 530How much are estimated monthly variable costs using the high-low method?Your Answer:Question 2 options:AnswerSaveQuestion 3 (1 point) Question 3 UnsavedA cost is $3 600 at 1 000 units $7 000 at 2 000 units and $9 200 at 3 000 units. This cost is aQuestion 3 options:mixed coststep costvariable costfixed costSaveQuestion 4 (1 point) Question 4 UnsavedWinny’s Office Furniture has a contribution margin ratio of 16%. If fixed costs are $182 300 how many dollars of revenue must the company generate in order to reach the break-even point?Your Answer:Question 4 options:AnswerSaveQuestion 5 (1 point) Question 5 UnsavedTim Taylor has written a self improvement book that has the following cost characteristics:Selling Price $16.00 per bookVariable cost per unit: Production $4.00Selling & administrative 2.00Fixed costs: Production $88 600 per yearSelling & administrative 24 300 per yearHow many units must be sold to break-even?Your Answer:Question 5 options:AnswerSaveQuestion 6 (1 point) Question 6 UnsavedThe use of fixed cost to increase profits at a rate faster than sales increase is called:Question 6 options:“What if “ analysisC-V-P analysisoperating leveragecontribution margin approachSaveQuestion 7 (1 point) Question 7 UnsavedAssume Sparkle Co. expects to sell 150 units next month. The unit sales price is $100 unit variable cost is $45 and the fixed costs per month are $5 000. The margin of safety is:Your Answer:Question 7 options:AnswerSaveQuestion 8 (1 point) Question 8 UnsavedWhich of the following statements about the relevant range is true?Question 8 options:Cost functions outside the relevant range are usually linearThe relevant range is the normal length of time in a company’s accounting periodEstimates outside the relevant range are usefulCost functions within the relevant range are assumed to be linear
