Cost ACost BCost CTotal CostsCost B is aA. FixedB. variableC. MixedD. sunk60,000 units 90,000 units$75,000$75,000$120,000$180,000$65,000$80,000$260,000 $335,000cost. Why?

Expenses that change according to the volume of products or services a company generates are known…

Answered: Cost A Cost B Cost C Total Costs Cost B…

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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Similar questions

6
(a) What is the gross margin now? (b) What is the net operating income now? (c) What is the contribution margin now?
Consider the following information: Costs Activity (hours) $ 51,000 40,000 $ 50,000 41,000 $ 58,000 42,000 $ 56,000 43,000 What cost and activity would be used as the high data point in high-low cost estimation? Multiple Choice None of these. $58,000 and 42,000 hours $58,000 and 43,000 hours $56,000 and 43,000 hours $56,000 and 42,000 hours
1. What would be the gross margin for FPD if it accepted the transfer price that will be charged by CD?
A6
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Con Supplies costs Power costs Inspection costs Assembly costs a. Supplies costs a. Power costs Alternative Q Alternative R $ 67,000 $ 67,000 $ 31,000 $ 30,100 $ 30,100 $ 35,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternat b. What is the differential cost between the two alternatives? a. Inspection costs a. Assembly costs b. Differential cost $ 21,000 $ 35,000 ६
Variable costs: Manufacturing Sales commission Total variable costs Fixed costs (allocated): Manufacturing Selling and administrative Total fixed costs Total costs Variable manufacturing cost per unit E20.24 Absorption cost per unit Total variable cost per unit = = $400 $192000-480 = ($192000-$120000)- 480 = ($192000-124000)-480 =$450 = 5650 $192 000 $ 24 000 $120 000 $48 000 $216 000 $168 000 $384 000 Determining markup percentage; target ROI: manufacturer LO 20.3 Refer to the cost and production data for the Wave Darter in Exhibit 20.4. The target profit is $110 000. Required Use the general formula to calculate the required markup percentages for each of the following cost- plus formulas: 1. variable manufacturing cost 2. absorption cost.
Continuation for the problem The net income under variable costing would be: * a. P64,000 b. P60,000 c. P56,000 d. P52,000 The net income under absorption costing would be: * a. The same as the income under variable costing. b. P8,000 greater than the income under variable costing. c. P12,000 greater than the income under variable costing. d. P8,000 less than the income under variable costing.
Question 5 Using the following table a) construct the cost schedule for a firm operating in the short run Marginal Average Average Average Fixed Quantity- Total Total Total Production Fixed Variable Cost Cost Variable Total cost cost Cost Cost Cost $180 $180 --- --- ---- ---- 1 $200 2 $215 3 $225 4 $230 5 $240 $260 7 $295 8 $345 9 $405 b) Graph the average variable cost, average total cost and marginal cost curves.
Determine the missing amounts. 1. 2. 3. $ Unit Selling Price $800 $350 (e) $ $ Unit Variable Costs $336 (c) (f) $ Unit Contribution Margin $147 $800 (a) Contribution Margin Ratio % (b) % (d) 40 %
Material costs Utilities costs Review costs Alternative 1 $86,000 $42,000 $39,000 $49,000 Alternative 2 $86,000 $41,100 $41,100 $49,000 Direct labor costs Identify the costs that are relevant and the costs that are not relevant, given the choice of alternatives. Calculate the differential cost between the alternatives. a. Material cost Utilities cost Review cost Direct labor cost b. Differential cost
A. Determine the missing amounts S.No Unit Selling Price Unit Variable Cost Contribution Margin per unit Contribution Margin Ratio 1 2 3 550 1500 (e) 370 (c) (f) (a) 600 900 (b) (d) 30 B. For Al Farabi Company, variable costs are 75% of sales, and fixed costs are $210,000.Management’snet income goal is $70,000. Compute the required sales needed to achieve management’s target net income of $70,000. (Use the mathematical equation approach.) C. Company A’s costs are mostly variable, whereas Company B’s costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain.

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Cost A Cost B Cost C Total Costs Cost B is a A. Fixed B. variable C. Mixed D. sunk 60,000 units 90,000 units $75,000 $75,000 $120,000 $180,000 $65,000 $80,000 $260,000 $335,000 cost. Why?