#6
|
A product sells for $135, variable costs are $100, and fixed costs are $68,000. If the selling price can be increased by 21% with a similar increase in variable costs, how many less units would have to be sold to earn $220,000? |
|
404 units. |
|
|
1,428 units. |
|
|
3,589 units. |
|
|
1,024 units. |
#7 9
|
The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four month period. |
|
Machine Hours |
Mfg. Overhead |
|
|
April |
76,000 |
$ 179,000 |
|
May |
50,000 |
$ 162,000 |
|
June |
108,000 |
$ 243,200 |
|
July |
104,000 |
$ 190,000 |
references
|
Section Break |
SB The following information is available regar… |
7
|
Using the high low method, compute the variable element of manufacturing overhead cost per machine hour. |
|
$2.13 per machine hour. |
|
|
$.39 per machine hour. |
|
|
$2.01 per machine hour. |
|
|
$1.40 per machine hour. |
8.
|
Using the high low method, compute the fixed element of Olsen’s monthly overhead cost. (Round per machine hour cost to 2 decimal paces.) |
|
$76,000. |
|
|
$104,000. |
|
|
$92,000. |
|
|
$81,200. |
9.
|
Olsen’s projected August operations will require approximately 155,000 machine hours. Using the high low method, compute total manufacturing overhead estimated for August. (Round per machine hour cost to 2 decimal paces.) |
|
$309,000. |
|
|
$162,000. |
|
|
$236,200. |
|
|
$87,000. |
#10
|
A company with an operating income of $90,000 and a contribution margin ratio of 72% has a margin of safety of: |
|
$64,800. |
|
|
$125,000. |
|
|
$321,429. |
|
|
It is not possible to determine the margin of safety from the information provided. |
#11
The following information is available:
|
Sales |
$ 240,000 |
|
Break even sales |
$ 150,000 |
|
Contribution margin ratio |
43% |
What is the operating income?
|
$0. |
|
|
$150,000. |
|
|
$64,500. |
|
|
$38,700. |