Reference no: EM133145765
Questions -
Q1. Cost classifications used for decisions making include?
Q2. If the net operating income is $10,000, the contribution margin is $40,000, and the variable expenses are $39,500, then the sales must be:
Q3. Assume the following information for a merchandising company:
Sales $483,000
Variable selling expenses $25,000
Cost of goods sold $350,000
Fixed administrative expenses $50,000
Fixed selling expenses $40,000
Variable administration expenses $5,000
What is the company's contribution margin?
Q4. A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows:
Amount per Unit
Direct materials $7.00
Direct labor $4.00
Variable manufacturing overhead $1.50
Fixed manufacturing overhead $5.00
Fixed selling expense $3.50
Fixed administrative expense $2.00
Sales commissions $1.00
Variable administrative expense $0.50
What is the total amount of variable cost incurred if the company produces and sells 11,600 units?
Q5. A merchandiser plans to sell 14,600 units next month at a selling price of $110 per unit. It also gathered the following cost estimates for next month.
Cost Cost formula
Cost of goods sold $60 per unit sold
Advertising expense $150,000 per month
Depreciation expense $70,000 per month
Shipping expense $100,000 per month and $10 per unit sold
Administrative salaries $50,000 per month
Sales commissions 5% of sales
Insurance expense $15,000 per month
What is the estimated net operating income for next month?