Reference no: EM132066223

Questions -

Question 1 - Thomas Train has collected the following information over the last six months.

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

mixed cost

step cost

variable cost

fixed cost

Question 4 - Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $188,800, 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:

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:

"What if " analysis

C-V-P analysis

Operating leverage

Contribution margin approach

Question 7 - Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $100, unit variable cost is $30, 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?

Cost functions outside the relevant range are usually linear

The relevant range is the normal length of time in a company's accounting period

Estimates outside the relevant range are useful

Cost functions within the relevant range are assumed to be linear