
MGMT 640 MGMT640 Quiz 9 Answers (MD)
MGMT 640 Quiz 9
Question 1
Thomas Train has collected the following information over the last six months.
Month March April May June July August
Units produced 10,000 12,000 18,200 13,000 12,000 15,000
Total costs $25,600
26,200 28,000 26,450 26,000 26,500
Using the high-low method, what is the variable cost per unit?
Question 2
Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:
How much are estimated monthly variable costs using the high-low method?
Question 3
A cost is $3,600 at 1,000 units, $7,000 at 2,000 units, and $9,200 at 3,000 units. This cost is a
Question 4
Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $187,800, how many dollars of revenue must the company generate in order to reach the break-even point?
Question 5
Tim Taylor has written a self improvement book that has the following cost characteristics:
Selling Price
Variable cost per unit: Production
Selling & administrative Fixed costs:
Production
Selling & administrative
How many units must be sold to break-even?
Question 6
The use of fixed cost to increase profits at a rate faster than sales increase is called:
Question 7
Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $90, unit variable cost is $45, and the fixed costs per month are $5,000. The margin of safety is:
Question 8
Which of the following statements about the relevant range is true?