Reference no: EM133049561

Questions -

Q?1. Isabellas, Inc., a local convenience? store, sells soft drinks. It sells two large drinks for every small drink. A large drink sells for? $2.50 with a variable cost of? $0.80. A small drink sells for? $1.25 with a variable cost of? $0.50. Find the weighted average contribution margin?

A. ?$1.38 per drink

B. ?$1.23 per drink

C. ?$4.15 per drink

D. 4.15 per drink

Q2. The following is the year ended data for Tiger Company:

Sales Revenue $59,000

Cost of Goods Manufactured 22,000

Beginning Finished Goods Inventory 1,900

Ending Finished Goods Inventory 3,800

Selling Expenses 15,800

Administrative Expenses 3,400

What is the cost of goods available for sale?

Q3. Martin was a professional classical guitar player until a motorcycle accident left him disabled. After long months of? therapy, he hired an experienced luthier? (a maker of stringed? instruments) and started a small shop to make and sell Spanish guitars. The guitars sell for? $800, and the fixed monthly operating costs are as? follows:

Rent and utilities ?$700

Wages and benefits to luthier ?$2,100

Other expenses ?$480

?Martin's accountant told him about contribution margin? ratios, and Martin understood clearly that for every dollar of? sales, $0.70 went to cover his fixed? costs, and anything above that point was profit.

Martin wishes to earn? $2,000 of operating profit each month. Calculate the number of guitars Martin will need to sell to achieve the target profit.?

A. 10 guitars

B. 5 guitars

C. 9 guitars

D. 2 guitar

Q4. Emeka Company has provided the following? information:

Sales price per unit ?$50

Variable cost per unit 12

Fixed costs per month ?$12,000

Calculate the contribution margin per unit.