# 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
&n