AC 505 AC505 Unit 1 Quiz (Kaplan University)

AC 505 Unit 1 Quiz (Kaplan University)

1. Atlanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost.  The  company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year:
2. The following information is available for Forrest Company:
3. A product sells for $15 per unit and has variable expenses of $9 per unit. Fixed expenses total $70,000 per month. How many units of the product must be sold each month to yield a monthly profit of $20,000?
4. Which of the following statements about operating leverage is false?
5. The following data are available for Bendo Co.: 
6. Atlanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost.  The  company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year:
7. Wilson sells a single product for $70 that has a variable cost of $45. Fixed costs at the break-even point amount to $15 per unit. If the company sells one unit in excess of its break-even volume, the bottom-line profit will be:
8. Which of the following statements about cost behavior is true?
9. Which of the following would take place if a company were forced to increase its variable cost per unit?
10. The following information is available for the Skyway Company for 20X5: