1)Under a relevant range of production when total quantities sold increase total fixed costsincreasedecreaseremain equalthere is no relationship2)Conversion costs areonly direct materialonly direct laboronly overheadoverhead and direct labor3)XY Company sells its unique product at $30.00. Variable costs per unit are $20.00. Total fixed sales salaries per month $40000.00. Other fixed costs per month $60000.00. Assume that the company wants to change the sales salaries as follows: Total fixed sales salaries per month 25000. Sales commission of 10% of sales.?Find at what sale-level is the company indifferent between the two alternatives$50005000 units100007500 units4) AJ Company makes three products.???Current selling price per unit variable cost per unit and machine hours required are as follows:??Products??XYZCurrent selling price per unit$20$30$20Variable cost per unit101812Machine hours required for each unit234The company has a maximum of 1000 machine hours available per month.Assume the company produces all products; find the total contribution margin per hour.$13.50$12$9$45) TC Company makes several printing works using two machines (X and Y).Data on the two machines for June 2010 are as follows:XYDirect material1015Time required for each unit (TR)23Expected volume during the month (EV)2000500Expected labor cost per hour50Budgeted overhead costs660000DetermineThe overhead rate per labor hourFOAR = $120.00 per hour workedFOAR = 120.00 per dollarFOAR = $60.00 per hour workedFOAR = $120.00 per overhead costs6) Assume the cost structure is as follows: TC = 25000 + 5q where TC = total costs q = quantities sold. Under relevant range of sales selling price per unit is $8.00. Total fixed costs are$100000$50000$25000More information is needed7) The income statements of Tahany Company for June and July 2005 are as follows:JuneJulySales610650Cost of goods sold420460Gross margin190190Selling and administrative expenses185195Income before tax5-5Using High Low Method the variable component of cost of goods sold is1.00.251.2508) Non value added activities areDirect material (only)Direct labor (only)Overhead (only)Not essential costs to make/manufacture a product9) Tany Corporation is a small table manufacturing company operating in the north of Puerto Rico.Managers estimate the following costs per unit (one table)Direct material (DM)$6.00Direct labor (DL)$4.00Variable manufacturing overhead (VMO)$3.00Variable administrative expenses (VAE)$1.00The estimated contribution margin is30%Monthly fixed costs areManufacturing$10000.00Administrative$5000.00200022002500275010) Tany Corporation is a small table manufacturing company operating in the north of Puerto Rico.Managers estimate the following costs per unit (one table)Direct material (DM)$6.00Direct labor (DL)$4.00Variable manufacturing overhead (VMO)$3.00Variable administrative expenses (VAE)$1.00The estimated contribution margin is30%Monthly fixed costs areManufacturing$10000.00Administrative$5000.00Total unit sold during last month is 2525 what is the total operating income.between $100 and $120between $120 and $140between $140 and $160between $160 and $18011) BC Company estimates the following data for the coming month: total variable costs $60000.00 income tax rate 30% contribution margin percentage 60%. Find the estimated total sales for the coming month.$100000$60000 / 40%$60000 / 60%$60000 X 60%12) If a company raises its required net incomethe tax rate will decreasebreak even point is negativerequired contribution margin increasesrequired contribution margin decreases13)If a company raises its required operating profitbreak even point is negativebreak even point is zerorequired contribution margin increasesrequired contribution margin decreases14) Copy ofXYZ has three products X Y and Z. The following information pertains to these products X Y and Z. Contribution margin percentages are 40% 50% and 40% respectively. Sales mix percentages are 20% 30% and 50% respectively. Monthly fixed costs are estimated to be $100.00. The weighted average contribution margin percentage is43%40%30%015) Which of the following examples is a short term decision?Make or buy decisionPurchase of landIssuing bondsJoint venturePurchase of building16) Sales (in units)60000Selling price per unit25Manufacturing costs per unit:Materials5Direct labor4OverheadVariable4Fixed6Total19Gross margin6Selling and admin. Expenses per unit2Operating income4A company in a foreign market offer to buy and the offer specifies the following dataunits to be sold10000price per unit20If the Company accepts the special offer the incremental profit would be$70000.00($70000.00)$10000.00($10000.00)17) Total CostsUnit CostDirect materials200002.00Direct labor250002.50Variable overhead150001.50Fixed overhead (non-avoidable)240002.40Fixed overhead (avoidable)260002.60Purchase cost85999Should the company produce the product internally?YesNoIndifferent to to make or to buyYes if the market price per unit covers the fixed cost per unit.18) Sales (in units)60000Selling price per unit25Manufacturing costs per unit:Materials5Direct labor4OverheadVariable4Fixed6Total19Gross margin6Selling and admin. Expenses per unit (fixed)2Operating income4A company in a foreign market offer to buy and the offer specifies the following dataunits to be sold10000price per unit13.1Should the company sell this special order?Yes acceptNo rejectIndifferent to reject or notAlways rejectWhich of the following costs should be considered in short term decisions?
