56. A business, with excess capacity, received an offer from an exporter for 10,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $20 Unit manufacturing costs: Variable $13 Fixed $1 What is the differential revenue from the acceptance of the offer? a. $200,000 b. $160,000 c. $130,000 d. $140,000 ____ 57. In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries? a. Debit Work in Process--Dept. B; credit Cost of Goods Sold--Dept. A. b. Debit Work in Process--Dept. B; credit Finished Goods--Dept. A. c. Debit Work in Process--Dept. B; credit Work in Process--Dept. A. d. Debit Finished Goods; credit Work in Process--Dept. B. ____ 58. JPAIR Corporation had $275,000 in invested assets, sales of $330,000, income from operations amounting to $49,500 and a desired minimum rate of return of 7.5%. The rate of return on investment for JPAIR is: a. 8% b. 10% c. 18% d. 7.5% ____ 59. What cost concept used in applying the cost-plus approach to product pricing, includes total selling and administrative expenses to which the desired profit is added to in the numerator, when calculating “markup %”? a. Variable cost concept b. Total cost concept c. Product cost concept d. Opportunity cost concept ____ 60. If fixed costs are $1,400,000, the unit selling price is $220, and the unit variable costs are $120, what is the amount of sales required to realize an operating income of $200,000? a. 14,000 units b. 12,000 units c. 16,000 units d. 13,333 units
____ 56. A business, with excess capacity, received an offer from an exporter for 10,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:
|
Domestic unit sales price |
$20 |
|
Unit |
|
|
Variable |
$13 |
|
Fixed |
$1 |
What is the differential revenue from the acceptance of the offer?
|
a. |
$200,000 |
|
b. |
$160,000 |
|
c. |
$130,000 |
|
d. |
$140,000 |
____ 57. In a
|
a. |
Debit Work in Process--Dept. B; credit Cost of Goods Sold--Dept. A. |
|
b. |
Debit Work in Process--Dept. B; credit Finished Goods--Dept. A. |
|
c. |
Debit Work in Process--Dept. B; credit Work in Process--Dept. A. |
|
d. |
Debit Finished Goods; credit Work in Process--Dept. B. |
____ 58. JPAIR Corporation had $275,000 in invested assets, sales of $330,000, income from operations amounting to $49,500 and a desired minimum
|
a. |
8% |
|
b. |
10% |
|
c. |
18% |
|
d. |
7.5% |
____ 59. What cost concept used in applying the cost-plus approach to product pricing, includes total selling and administrative expenses to which the desired profit is added to in the numerator, when calculating “markup %”?
|
a. |
Variable cost concept |
|
b. |
Total cost concept |
|
c. |
Product cost concept |
|
d. |
Opportunity cost concept |
____ 60. If fixed costs are $1,400,000, the unit selling price is $220, and the unit variable costs are $120, what is the amount of sales required to realize an operating income of $200,000?
|
a. |
14,000 units |
|
b. |
12,000 units |
|
c. |
16,000 units |
|
d. |
13,333 units |
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