Variable costs per unit are constant. Therefore, when 12,000 units are produced variable costs will remain at $14.00 per unit. | |||||||||||
Option B is correct | |||||||||||
When 21,000 units are produced, variable costs are $14 00 per unit. Therefore, when 12,000 units...
When 27,000 units are produced, fixed costs are $18.00 per unit. Therefore, when 24,000 units are produced, fixed costs will O A remain at $18.00 per unit B. total $432,000 O C. increase to $20.25 per unit OD. decrease to $16.00 per unit
When 27,000 units are produced, fixed costs are $18.00 per unit. Therefore, when 24,000 units are produced, fixed costs will O A remain at $18.00 per unit B. total $432,000 O C. increase to $20.25 per unit OD. decrease to $16.00 per unit
When 24,000 units are produced, fixed costs are $15.00 per unit. Therefore, when 20,000 units are produced, fixed costs will O A. total $300,000 O B. decrease to $12.50 per unit OC. remain at $15.00 per unit OD. Increase to $18.00 per unit
Within the relevant range, as the number of units produced increases: the variable cost per unit will increase O the fixed cost per unit will decrease O total variable costs will remain the same O total fixed costs will decrease
4. When the selling price per unit and variable costs per unit remain constant, if total fixed costs decrease, which of the following statements is true? A. Breakeven point in units increases. C. Breakeven point in units decreases B. Contribution margin decreases. D. Contribution margin increases. lace Furniture sells two products, tables and chairs. A table sells for $80 per unit riable costs of $25 per unit. A chair sells for $60 per unit with variable costs of Total fixed...
8. When activity volume increases in the short term, A. fixed costs per unit remain unchanged and variable costs per unit increase B. fixed costs per unit increase and variable costs per unit remain unchanged C. fixed costs per unit remain unchanged and variable costs per unit decrease D. fixed costs per unit decrease and variable costs per unit remain unchanged E. fixed costs per unit decrease and variable costs per unit increase
Units in beginning inventory Units produced Units sold 2,000 units 13,000 units 12,000 units Costs per unit: Direct materials Direct labor Variable overhead Variable selling Fixed overhead $7 $6 $2 $3 $5 What is the total cost (value) of ending inventory under variable costing? $45,000 $60,000 $15,000 O $54,000
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
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If variable costs per unit decreased because of a decrease in utility rates, the break-even point would Oa. decrease Ob. increase Oc. remain the same Od. increase or decrease, depending upon the percentage increase in utility rates If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the operating leverage? Oa. 0.0 Ob. 1.3 Oc. 7.5 Od. 2.0 If fixed costs are $561,000 and the unit contribution margin...