Lester Co. recent Contribution margin Income statement is as follows: Sales - 75893

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Question Set Question 1 4 / 4 points In applying the high-low method, how much is the fixed cost?............................... Month......................................................Miles...........................Total Cost........ March.....................................................60,000.........................$47,500........... April.......................................................70,000.........................$51,500........... May........................................................50,000.........................$41,500........... June.......................................................80,000.........................$50,500........... $9,000 $16,500 $26,500 $15,000 Question Set Question 2 3 / 3 points Lester Co. recent Contribution margin Income statement is as follows: Sales $600,000; Variable Costs $420,000; Contribution Margin $180,000; Fixed Costs of $150,000; and Net Income of $30,000. Without resorting to computations, what is the total contribution margin dollars at break-even point? $150,000 $600,000 $180,000 $30,000 $420,000 Question Set Question 3 4 / 4 points Winrow Company sells radios for $50 per unit. The fixed costs are $315,000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $75,000 and variable costs will be 50% of the selling price. The new break-even point in units is: 15,450 15,750 12,600 15,600 Question Set Question 4 3 / 3 points Given the cost formula Y = $12,500 + $5.00X, total cost for an activity level of 4,000 units would be: $16,000 $20,000 $32,500 $12,500 Question Set Question 5 4 / 4 points Which of the following would be the least controllable fixed costs? Property taxes Rent Research and development Management training programs Question Set Question 6 3 / 3 points Which one of the following is a cost which remains constant in total at various levels of activity A variable cost A mixed cost A contribution margin A fixed cost Question Set Question 7 4 / 4 points Lester Co. has a single product. THe selling price is $50 and the variable cost is $30 per unit. the company's fixed costs are $200,000. What is the company's unit contribution margin? $30 $80 $20 $50 None of the above Question Set Question 8 4 / 4 points Keith Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $14 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio? 70% 20% 30% 80% Question Set Question 9 4 / 4 points The following data relate to two levels of activity at an out-patient clinic in a hospital: Number of patient-visits..................4,500.........5,750 General overhead......................$269,750......$289,125 The best estimate of the variable general overhead cost per patient-visit is closest to: $50.28 $15.50 $59.94 $44.44 Question Set Question 10 4 / 4 points Contribution margin is: Sales less variable production expense Sales less cost of goods sold Sales less all variable and fixed expenses Sales less variable production, variable selling, and variable administrative expense. None of the answers. Question Set Question 11 4 / 4 points For an activity base to be useful in cost behavior analysis, there should be a correlation between changes in the level of activity and changes in the costs. the activity level should be constant over a period of time the activity should always be stated in terms of units the activity should always be stated in dollars Question Set Question 12 4 / 4 points For Garland Company sales is $2,000,000, fixed expenses are $600,000, and the contribution margin ratio is 36%. What is net income? $720,000 $504,000 $216,000 $120,000 Question Set Question 13 4 / 4 points Which one of the following is true concerning a CVP income statement? Costs and expenses are classified as product or period. Costs and expenses are classified only by function. It is prepared for both internal and external use. It shows contribution margin instead of gross profit. Question Set Question 14 4 / 4 points Wynne Company has a weighted-average unit contribution margin of $25 for its two products, Regular and Deluxe. Expected sales for Wynne are 60,000 Regular and 40,000 Deluxe. Fixed expenses are $2,000,000. How may Regulars would Wynne sell at the break-even point? 40,000 48,000 32,000 60,000 Question Set Question 15 4 / 4 points Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $3,330,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will be the total contribution margin at the break-even point? $3,360,000 $2,865,350 $3,870,000 $3,330,000 Question Set Question 16 4 / 4 points Fixed costs normally will NOT include property taxes depreciation on buildings and equipment. direct labor supervisory salaries Question Set Question 17 4 / 4 points At the break-even point of 2,500 units, variable costs are $55,000, and fixed costs are $34,000. How much is the selling price per unit? $8.40 $22.00 $35.60 $13.60 Question Set Question 18 4 / 4 points Kelly Kooper Kettle has a unit selling price of $500, variable cost per unit $300, and fixed costs of $170,000. Compute the break-even point in sales dollars. $102,000 $283,333 $68,000 $425,000 Question Set Question 19 4 / 4 points The relevant range of activity refers to the levels of activity over which the company expects to operate activity level where all costs are curvilinear geographical areas where the company plans to operate. level of activity where all costs are constant. Question Set Question 20 4 / 4 points The increased use of automation and less use of the work force in companies has caused a trend towards an increase in both variable and fixed costs fixed costs and a decrease in variable costs variable costs and a decrease in fixed costs variable costs and no change in fixed costs Question Set Question 21 4 / 4 points Moschino company sells cassette players for $60 each. Variable costs are $40 per unit, and fixed costs total $30,000. What sales are needed by Moschino to break even? $75,000 $90,000 $120,000 $40,000 Question Set Question 22 4 / 4 points A cost that increases in total, but not proportionately with increases in the activity level, is a(n) fixed cost. variable cost. mixed cost unusual fixed cost. Question Set Question 23 4 / 4 points To which function of management is CVP analysis most applicable? Planning Motivating controlling Directing Question Set Question 24 4 / 4 points Vazquez Company's cost of goods sold is $420,000 variable and $240,000 fixed. the company's selling and administrative expenses are $300,000 variable and $360,000 fixed. If the company's sales is $1,680,000, what is its net income? $960,000 $360,000 $1,080,000 $1,020,000 Question Set Question 25 4 / 4 points Which cost is NOT charged to the product under variable costing? Variable manufacturing overhead Fixed manufacturing overhead Direct materials Direct labor Question Set Question 26 4 / 4 points Reducing reliance on human workers and instead investing heavily in computers and online technology will reduce variable costs and increase fixed costs reduce fixed costs and increase variable costs make the company less susceptible to economic swings have no effect on the relative proportion of fixed and variable costs Question Set Question 27 4 / 4 points Small Fry company has sales of $1,250,000, variable costs of $650,000, and fixed costs of $480,000. Small Fry's degree of operating leverage is 5.00 1.08 1.35 1.25 Question Set Question 28 4 / 4 points Briscoe Company sells it product for $60 per unit. During 2011, it produced 60,000 units and sold 50,000 units (there are no beginning inventory). Costs per unit are: direct materials $15, direct labor $9, and variable overhead $3. Fixed costs are $720,000 manufacturing overhead, and $90,000 selling and administrative expenses. Ending inventory under variable costing is $270,000 $600,000 $390,000 $1,350,000 Question Set Question 29 4 / 4 points Some fixed manufacturing overhead costs of the current period are deferred to future periods under variable costing neither absorption nor variable costing both absorption and variable costing absorption costing Question Set Question 30 4 / 4 points In 2014, Logan sold 1,000 units at $500 each, and earned net income of $50,000. Variable expenses were $300 per unit, and fixed expenses were $150,000. The same selling price is expected for 2015. Logan's variable cost per unit will rise by 10% in 2015 due to increasing material costs, so they are tentatively planning to cut fixed costs by $15,000. How many units must Logan sell in 2015 to maintain the same income level as 2014? 1,088 1,176 794 971 Question Set Question 31 4 / 4 points For Bobby Company, sales is $1,200,000 (6,000 units), fixed expenses are $360,000, and the contribution margin per unit is $80. what is the margin of safety in dollars? $300,000 $840,000 $60,000 $540,000 Question Set Question 32 4 / 4 points Which of the following is NOT a mixed cost? Electricity Car rental fee Telephone Expense Depreciation
Solution Description

Question Set
Question 1        4 / 4 points
In applying the high-low method, how much is the fixed cost?...............................

Month......................................................Miles...........................Total Cost........
March.....................................................60,000.........................$47,500...........
April.......................................................70,000.........................$51,500...........
May........................................................50,000.........................$41,500...........
June.......................................................80,000.........................$50,500...........
    
$9,000
     
$16,500
      
$26,500
     
$15,000
Question Set
Question 2        3 / 3 points
Lester Co. recent Contribution margin Income statement is as follows: Sales $600,000; Variable Costs $420,000; Contribution Margin $180,000; Fixed Costs of $150,000; and Net Income of $30,000. Without resorting to computations, what is the total contribution margin dollars at break-even point?
      
$150,000
     
$600,000
     
$180,000
     
$30,000
     
$420,000
Question Set
Question 3        4 / 4 points
Winrow Company sells radios for $50 per unit. The fixed costs are $315,000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $75,000 and variable costs will be 50% of the selling price. The new break-even point in units is:
     
15,450
     
15,750
     
12,600
      
15,600
Question Set
Question 4        3 / 3 points
Given the cost formula Y = $12,500 + $5.00X, total cost for an activity level of 4,000 units would be:
     
$16,000
     
$20,000
      
$32,500
     
$12,500
Question Set
Question 5        4 / 4 points
Which of the following would be the least controllable fixed costs?
      
Property taxes
     
Rent
     
Research and development
     
Management training programs
Question Set
Question 6        3 / 3 points
Which one of the following is a cost which remains constant in total at various levels of activity
     
A variable cost
     
A mixed cost
     
A contribution margin
  &n