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Company 1 Company 2 Selling price per deck $ 3.00 $3.00 Cost of paper deck 0.62 0.65 Printing ink per deck 0.13 0.15 Labor per deck 0.75 1.25 Variable overhead per 0.30 0.35 deck Fixed costs $960,000 $252,000 Given these data, which of the following responses is correct? (In units) A. В. C. D. Breakeven point for Co. 1 533,334 533,334 800,000 800,000 Breakeven point for Co. 2 105,000 105,000 420,000 420,000 Volume at which profits of Co. 1 and Co. 2 are equal 1,000,000 1,180,000 1,000,000 1,180,000 O None O B O A O D

Company 1 Company 2 Selling price per deck $ 3.00 $3.00 Cost of paper deck 0.62 0.65 Printing ink per deck 0.13 0.15 Labor per deck 0.75 1.25 Variable overhead per 0.30 0.35 deck Fixed costs $960,000 $252,000 Given these data, which of the following responses is correct? (In units) A. В. C. D. Breakeven point for Co. 1 533,334 533,334 800,000 800,000 Breakeven point for Co. 2 105,000 105,000 420,000 420,000 Volume at which profits of Co. 1 and Co. 2 are equal 1,000,000 1,180,000 1,000,000 1,180,000 O None O B O A O D

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Two companies are expected to have annual sales of 1,000,000 decks of playing cards next year. Estimates for next year are presented below: Company 1 Company 2 Selling price per deck Cost of paper deck Printing ink per deck $ 3.00 0.62 0.13 $3.00 0.65 Labor per deck 0.75 0.15 1.25 Variable overhead per deck 0.30 0.35 Fixed costs $960.000 $252,000 Given these data, which of the following responses is correct? (In units) A B C. D. Breakeven point for Co. 1 533,334 533,334 800,000 800,000 Breakeven point for Co. 2 105,000 105.000 420.000 420,000 Volume at which profits of Co. 1 and Co. 2 are equal 1,000.000 1.180.000 1,000,000 1,180.000 None B A D C Data concerning NikNik Corporation's activity for the 6 months appear below: Machine Electrical Cost Hours January P3,120 February 4,460 March 3.500 April 5,040 May 2,900 June 3,200 4.000 6.000 4,800 5,800 3.600 4,200 Using the high-low method of analysis, estimate the variable electrical cost per machine hour (nearest centavo).
Two companies are expected to have annual sales of 1,000,000 decks of playing cards next year. Estimates for next year are presented below: Company 1 Company 2 Selling price per deck $ 3.00 $3.00 Cost of paper deck 0.62 0.65 Printing ink per deck 0.13 0.15 Labor per deck 0.75 1.25 Variable overhead per 0.30 0.35 deck Fixed costs $960,000 $252,000 Given these data, which of the following responses is correct? (In units) A. C. D. Breakeven point for Co. 1 533,334 533,334 800,000 800,000 Breakeven point for Co. 2 105,000 105,000 420,000 420,000 Volume at which profits of Co. 1 and Co. 2 are equal 1,000,000 1,180,000 1,000,000 1,180,000 O None O B O A O D B.
Transcribed Image Text:Two companies are expected to have annual sales of 1,000,000 decks of playing cards next year. Estimates for next year are presented below: Company 1 Company 2 Selling price per deck $ 3.00 $3.00 Cost of paper deck 0.62 0.65 Printing ink per deck 0.13 0.15 Labor per deck 0.75 1.25 Variable overhead per 0.30 0.35 deck Fixed costs $960,000 $252,000 Given these data, which of the following responses is correct? (In units) A. C. D. Breakeven point for Co. 1 533,334 533,334 800,000 800,000 Breakeven point for Co. 2 105,000 105,000 420,000 420,000 Volume at which profits of Co. 1 and Co. 2 are equal 1,000,000 1,180,000 1,000,000 1,180,000 O None O B O A O D B.
Data concerning NikNik Corporation's activity for the 6 months appear below: Machine Electrical Cost Hours January P3,120 4,000 February 4,460 6,000 March 3,500 4,800 April 5,040 5,800 May 2,900 3,600 June 3,200 4,200 Using the high-low method of analysis, estimate the variable electrical cost per machine hour (nearest centavo). e.g. 1405.688888, Type 1405.69
Transcribed Image Text:Data concerning NikNik Corporation's activity for the 6 months appear below: Machine Electrical Cost Hours January P3,120 4,000 February 4,460 6,000 March 3,500 4,800 April 5,040 5,800 May 2,900 3,600 June 3,200 4,200 Using the high-low method of analysis, estimate the variable electrical cost per machine hour (nearest centavo). e.g. 1405.688888, Type 1405.69
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