Reference no: EM132552474

Question 1: The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:

Maximum capacity with present facilities.................. 4500 units

Total fixed cost (per period)...............................................986337 dollars

Variable cost per unit................................................................120.29 dollars

Sales price per unit.......................................................................200.48 dollars

The contribution margin per unit for product no. CK74 is

Select one:

a. $117

b. $26.

c. $80.19

Question 2: The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:

Maximum capacity with present facilities.................. 4500 units

Total fixed cost (per period)...............................................986337 dollars

Variable cost per unit................................................................120.29 dollars

Sales price per unit.......................................................................200.48 dollars

The number of units of CK74 that Ruby must sell to break-even is:

Select one:

a. 20000

b. 12300

c. 30,000

Question 3: The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:

Maximum capacity with present facilities.................. 4500 units

Total fixed cost (per period)...............................................986337 dollars

Variable cost per unit................................................................120.29 dollars

Sales price per unit.......................................................................200.48 dollars

The dollar sales volume necessary to produce operating income of $245,000 is closest to (round your intermediate percentages to the nearest whole number):

Select one:

a. $2,052,228

b. $3,078,343

c. $4,124,000

Question 4: Incremental costs can be defined as

Select one:

a. Costs incurred in the past

b. The differences between costs incurred under alternative courses of action

c. Costs that are expected to increase regardless of the course of action chosen

Question 5: Opportunity costA cost that has already been incurred and cannot be changed is called a(n):

Select one:

a. Out-of-pocket cost

b. Opportunity cost

c. Sunk cost