Question

QUESTION 6

1. Doggie pals produces 110,000 dog collars each month that give off a fresh scent to keep your dog smelling clean between baths. Total manufacturing costs are $220,000. Of this amount, $150,000 are variable costs. What are the total production costs when 125,000 collars are produced?

   	a.	$100,455
   	b.	$240,455
   	c.	$170,455
   	d.	$390,455

3 points   

QUESTION 7

1. The unit contribution margin is computed by:

   	a.	subtracting variable cost per unit from sales price per unit
   	b.	dividing variable cost per unit by sales revenue
   	c.	subtracting sales price per unit from variable cost per unit
   	d.	dividing sales revenue by variable cost per unit.

2 points   

QUESTION 8

1. Dairy Days Ice cream sells ice cream cones for $4 per customer. Variable cost is $3 per cone. Fixed costs are $2,500 per month. What is Dairy Days contribution margin ratio?

   	a.	2%
   	b.	25%
   	c.	267%
   	d.	63%

2 points   

QUESTION 9

1. ave motion picture sells movie tickests for $10 per movie patron. Variable costs are $7.50 per movie patron. Fixed costs are $50,000 per month. What is Fave motion pictures projected operating income if 25,000 movie patrons see movies during the month?

   	a.	$62,500
   	b.	$250,000
   	c.	$12,500
   	d.	$200,000

3 points   

QUESTION 10

1. The following data relates to Ivory corp.

   Total Fixed Cost= $25,000

   Selling Price per unit=$22

   Variable Cost per unit=$15

   Assuming 8,500 units are sold, what is the contribution margin?

   	a.	$84,500
   	b.	$34,500
   	c.	$314,500
   	d.	$59,500

Answer 1

6
Variable costs	170455	=150000/110000*125000
Fixed costs	70000	=220000-150000
Total production costs	240455
Option B is correct
7
The unit contribution margin is computed by subtracting sales price per unit from variable cost per unit
Option C is correct
8
Contribution margin ratio	25%	=(4-3)/4
Option B is correct
9
Sales	250000	=25000*10
Less: Variable costs	187500	=25000*7.5
Contribution margin	62500
Less: Fixed costs	50000
Operating income	12500
Option C is correct
10
Selling Price per unit	22
Less: Variable Cost per unit	15
Contribution margin per unit	7
X Units sold	8500
Contribution margin	59500
Option D is correct