developer

41) If the selling price per unit of a product is $50, variable costs per unit are $40, and total fixed costs are $50,000, a company must sell 6,000 units to make a target operating income of $10,000. 42) Gilley, Inc., sells a single product. The company's most recent income statement is given below. Sales (4,000 units)$120,000 Less variable expenses(68,000) Contribution margin52,000 Less fixed expenses(40,000) Net income$ 12,000 Required:   a.Contribution margin per unit is$ ________ per unit b.If sales are doubled to $240,000, total variable costs will equal$ ________ c.If sales are doubled to $240,000, total fixed costs will […]

1) The selling price per unit less the variable cost per unit is the: A) fixed cost per unit B) gross margin C) margin of safety D) contribution margin per unit Answer the following questions using the information below: Sherry's Custom Jewelry sells a single product. 700 units were sold resulting in $7,000 of sales revenue, $2,800 of variable costs, and $1,200 of fixed costs. 2) Breakeven point in units is: A) 200 units B) 300 units C) 500 units D) None of these answers are correct. 3) The number of units that must be sold to achieve $6,000 of […]

21) Work-in-process inventory would normally include: A) direct materials in stock and awaiting use in the manufacturing process B) goods partially worked on but not yet fully completed C) goods fully completed but not yet sold D) products in their original form intended to be sold without changing their basic form 22) Finished goods inventory would normally include: A) direct materials in stock and awaiting use in the manufacturing process B) goods partially worked on but not yet fully completed C) goods fully completed but not yet sold D) products in their original form intended to be sold without changing […]

6) The allowance method of accounting for bad debts is required by GAAP because of the materiality principle. 7) The contra-account, Allowance for Doubtful Accounts, is credited when journal entries are made for estimates of bad debts. 8) The percent of sales method is the only method allowed by GAAP to estimate the amount of uncollectible accounts. 9) The net realizable value of accounts receivable is computed by subtracting the allowance for doubtful accounts from the amount in the accounts receivable control account. 10) When using the aging method, the amount calculated to be the uncollectible accounts is the amount […]

  12.2   Evaluate existing information to decide on a competitive price for a special order.   1) Special orders increase income if the revenue from the order exceeds the incremental variable and fixed costs incurred to fill the order.   2) In deciding whether to accept a special sales order, any fixed costs that would remain unchanged are considered irrelevant data.   3) A price-bidding decision for a one-time-only special order includes an analysis of A) only marketing costs. B) all cost drivers. C) all costs of each function in the value chain. D) only fixed manufacturing costs. E) indirect […]