In: Accounting
1. Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent.
Cost |
Machine Hours |
|
March | $3,070 | 15,463 |
April | 2,684 | 10,410 |
May | 2,843 | 12,363 |
June | 3,566 | 18,388 |
a.$0.11
b.$0.62
c.$0.66
d.$1.22
2. If sales are $822,000, variable costs are 61% of sales, and operating income is $244,000, what is the contribution margin ratio?
a.61%
b.57%
c.43%
d.39%
3. Bryce Co. sales are $853,000, variable costs are $461,500, and operating income is $225,000. What is the contribution margin ratio?
a.54.1%
b.41.6%
c.45.9%
d.59.3%
4. If fixed costs are $260,000, the unit selling price is $116, and the unit variable costs are $70, what is the break-even sales (units)?
a.3,714 units
b.1,398 units
c.2,241 units
d.5,652 units
5. If fixed costs are $758,000 and variable costs are 70% of sales, what is the break-even point in sales dollars?
a.$2,526,667
b.$3,284,667
c.$530,600
d.$1,288,600
6. If fixed costs are $1,464,000, the unit selling price is $226, and the unit variable costs are $103, what is the amount of sales required to realize an operating income of $221,000?
a.13,699 units
b.2,146 units
c.14,214 units
d.6,478 units
7. When Isaiah Company has fixed costs of $108,160 and the contribution margin is $26, the break-even point is
a.5,500 units
b.4,160 units
c.8,320 units
d.11,570 units
8. If a business had sales of $4,325,000 and a margin of safety of 20%, the break-even point was
a.$3,460,000
b.$865,000
c.$5,190,000
d.$7,785,000