110) The selling price of a Road King bicycle is $700, unit variable costs are $350, and total fixed costs are $12,600. How many bicycles will Road King need to sell to breakeven? A) 25,200 B) 12 C) 36 D) 18 111) The selling price of a Road King bicycle is $700, unit variable costs are $350, and total fixed costs are $12,600. What are breakeven sales in dollars? A) $8,400 B) $36 C) $12,600 D) $25,200 112) Barbara's Candles provides the following information about its single product. Targeted operating income$55,000 Selling price per unit$100.00 Variable cost per unit$60.00 Total […]

199) In most circumstances, all fixed costs can be eliminated by outsourcing a product. 200) An opportunity cost is a past cost. 201) Qualitative factors play an important part in make or buy decisions. 202) Outsourcing decisions are best made by comparing the total manufacturing costs, both fixed and variable, allocated to the product versus the total unit cost charged by the outsourcing company. 203) The maximum outsourcing price a company is willing to pay can be found by solving for the company's indifference point. 204) Opportunity costs should be factored into outsourcing decisions. 205) Companies often consider outsourcing so […]

21.When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets inventory item balances with an entry to the:A.Uncategorized Expenses accountB.Uncategorized Income accountC.Opening Balance Equity accountD.Capital Stock account 22.The purchasing transaction cycle for a merchandising company is:A.Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print CheckB.Create Invoice > Receive Payment > Record DepositsC.Create Purchase Order > Receive Payment > Record DepositsD.Create Invoice > Receive Inventory > Pay Bill > Record Deposits 23.The sales transaction cycle for a merchandising company is:A.Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > […]

61) Loyal Pet Company expects to sell 5,000 beefy dog treats in January and 9,000 in February for $3 each. What will be the total sales revenue reflected in the sales budget for those months? A) January $15,000; February $27,000 B) January $1,667; February $3,000 C) January $3,000; February $1,667 D) January $27,000; February $15,000 62) Mockingbird Company expects to sell 5,200 bird perches in January and 9,500 in February for $3 each. What will be the total sales revenue reflected in the sales budget for those months? A) January $1,733; February $3,167 B) January $15,600; February $28,500 C) January […]

96) Using ________ may cause a manager to reject a project that may be profitable to the company as a whole. A) operating income B) residual income C) ROI D) EVA 97) A manager can increase return on investment (ROI) by doing which of the following? A) Increase operating expenses B) Increase operating assets C) Decrease sales D) Decrease operating expenses 98) Which of the following financial performance measures can be used to compare potential projects of different sizes? A) ROI B) Residual income C) Sales revenue D) Operating income 99) Assume the Air Conditioning division of the General Appliance […]