Question 1

A company's total costs are calculated by

Accepted Answer

Total costs are calculated by adding total fixed costs to total variable costs. This is because fixed costs are costs that do not vary with changes in output, whereas variable costs are costs that vary with changes in output. Therefore, the sum of fixed and variable costs gives the total cost of production for a company.

Question 2

Variable costs

Accepted Answer

Variable costs are fixed per unit and vary in total as production levels change. This means that the cost per unit remains the same regardless of the number of units produced, but the total variable cost will increase or decrease in direct proportion to production volume.

Question 3

Kramer Manufacturing produces blenders.Its total fixed costs are $30,000.Its variable costs are $55.00 per blender.As production of blenders increases (within the relevant range),fixed costs will

Accepted Answer

Fixed costs per unit decrease as production increases because the total fixed costs are spread over more units, reducing the cost per unit.

Question 4

London Plastics has monthly fixed costs of $84,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $15.00 and London Plastics sell 14,000 units,the company's total variable costs will be

Accepted Answer

B)Calculations: $4.00 × 14,000 = $56,000

Question 5

A company has fixed costs of $60,000 per month.If sales double from 6,000 to 12,000 units during the month,fixed costs in total will

Accepted Answer

Fixed costs do not change with an increase or decrease in sales volume. Therefore, the fixed costs will remain the same at $60,000 per month.

Question 6

Getting to school for your 8 a.m.class doesn't leave much time for breakfast,and you are quite hungry by the time class ends.It is a long walk to the cafeteria,the lines are long once you get there,and you find yourself having to decide between having breakfast and getting to your next class on time.Many of your friends have expressed the same problem.The administration has agreed to let you set up a table just outside the building where you will sell various snacks for $1 each.You have agreed to pay the administration $400 per month and salaries to your friends to run the business will be another $400 per month.It will cost you 60 cents each to buy the pre-packaged snacks.You believe you can sell 2,500 snack packs per month.
a.What are the total fixed costs per month?
b.What are the total variable costs per month?
c.What is the fixed cost per snack pack?
d.What is the variable cost per snack pack?
e.What is the average cost per snack pack?
f.What is the average profit margin per snack pack?
g.Based on your analysis,should you start the snack pack business?

Accepted Answer

The answer of Getting to school for your 8 a.m.class...

Question 7

A company has monthly fixed costs of $112,500.The variable costs are $6.00 per unit.If the sales price of a unit is $19.00 and we sell 7,500 units,the company's total variable costs will be

Accepted Answer

B)Calculations: 7,500 × $6.00 = $45,000

Question 8

London Plastics sells a product for $15.00 per unit.The product requires $4.00 per unit in variable costs to produce it.The company plans on selling 12,000 units of this product.If the monthly fixed costs are $84,000,the company's average fixed costs per unit will be

Accepted Answer

B)Calculations: 84,000 / 12,000 = $7.00

Question 9

The sales price of a particular unit is $19.00.The company plans to sell 7,500 units.The variable costs are $6.00 per unit and monthly fixed costs are $112,500.Given this information what is the average fixed cost per unit?

Accepted Answer

D)Calculations: 112,500 / 7,500 = 15

Question 10

The sales price of a particular unit is $19.00.The company plans to sell 7,500 units.The variable costs are $6.00 per unit and monthly fixed costs are $112,500.Given this information what is the company's total sales revenue?

Accepted Answer

B)Calculations: $19.00 × 7,500 = $142,500

Question 11

A company has monthly fixed costs of $112,500.The variable costs are $6.00 per unit.If the sales price of a unit is $19.00 and we sell 7,500 units,the total sales revenue will be

Accepted Answer

C)Calculations: $19.00 × 7,500 = $142,500

Question 12

A company produces toy airplanes at a variable cost of $23 per toy.If 7,000 toys are produced at a total variable cost of $161,000,the total variable cost at 4,500 toys will be

Accepted Answer

C)Calculations: 4,500 × $23.00 = $103,500

Question 13

On the line in front of each statement,enter the letter corresponding to the term that best fits that statement.You may use a letter more than once and some letters may not be used at all.

Accepted Answer

The answer of On the line in front of each...

Question 14

The sales price of a particular unit is $19.00.The company plans to sell 7,500 units.The variable costs are $6.00 per unit and monthly fixed costs are $112,500.Given this information what is the company's total variable cost?

Accepted Answer

A)Calculations: 7,500 × $6.00 = $45,000

Question 15

London Plastics has monthly fixed costs of $84,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $15.00 and London Plastics sell 14,000 units,the company's total sales revenue will be

Accepted Answer

B)Calculations: 14,000 × $15.00 = $210,000

Question 16

London Plastics has monthly fixed costs of $84,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $15.00 and London Plastics sell 14,000 units,the company's average fixed costs per unit will be

Accepted Answer

A)Calculations: 84,000 / 14,000 = $6.00

Question 17

A company has monthly fixed costs of $112,500.The variable costs are $6.00 per unit.If the sales price of a unit is $19.00 and we sell 7,500 units,the company's average fixed costs per unit will be

Accepted Answer

D)Calculations: 112,500 / 7,500 = 15

Question 18

Differentiate between fixed and variable costs and give an example of each.

Accepted Answer

The answer of Differentiate between fixed and variable costs and...

Question 19

London Plastics sells a product for $15.00 per unit.The product requires $4.00 per unit in variable costs to produce it.The company plans on selling 12,000 units of this product.If the monthly fixed costs are $84,000,the total sales revenue will be

Accepted Answer

D)Calculations: 12,000 × $15.00 = $180,000

Question 20

London Plastics sells a product for $15.00 per unit.The product requires $4.00 per unit in variable costs to produce it.The company plans on selling 12,000 units of this product.If the monthly fixed costs are $84,000,the company's total variable costs will be

Accepted Answer

D)Calculations: $4.00 × 12,000 = $48,000

Quiz 2: Building Blocks of Managerial Accounting

A company's total costs are calculated by

Variable costs

Kramer Manufacturing produces blenders.Its total fixed costs are $30,000.Its variable costs are $55.00 per blender.As production of blenders increases (within the relevant range) ,fixed costs will

London Plastics has monthly fixed costs of $84,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $15.00 and London Plastics sell 14,000 units,the company's total variable costs will be

A company has fixed costs of $60,000 per month.If sales double from 6,000 to 12,000 units during the month,fixed costs in total will

A company has monthly fixed costs of $112,500.The variable costs are $6.00 per unit.If the sales price of a unit is $19.00 and we sell 7,500 units,the company's total variable costs will be

London Plastics sells a product for $15.00 per unit.The product requires $4.00 per unit in variable costs to produce it.The company plans on selling 12,000 units of this product.If the monthly fixed costs are $84,000,the company's average fixed costs per unit will be

The sales price of a particular unit is $19.00.The company plans to sell 7,500 units.The variable costs are $6.00 per unit and monthly fixed costs are $112,500.Given this information what is the average fixed cost per unit?

The sales price of a particular unit is $19.00.The company plans to sell 7,500 units.The variable costs are $6.00 per unit and monthly fixed costs are $112,500.Given this information what is the company's total sales revenue?

A company has monthly fixed costs of $112,500.The variable costs are $6.00 per unit.If the sales price of a unit is $19.00 and we sell 7,500 units,the total sales revenue will be

A company produces toy airplanes at a variable cost of $23 per toy.If 7,000 toys are produced at a total variable cost of $161,000,the total variable cost at 4,500 toys will be

On the line in front of each statement,enter the letter corresponding to the term that best fits that statement.You may use a letter more than once and some letters may not be used at all.

The sales price of a particular unit is $19.00.The company plans to sell 7,500 units.The variable costs are $6.00 per unit and monthly fixed costs are $112,500.Given this information what is the company's total variable cost?

London Plastics has monthly fixed costs of $84,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $15.00 and London Plastics sell 14,000 units,the company's total sales revenue will be

London Plastics has monthly fixed costs of $84,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $15.00 and London Plastics sell 14,000 units,the company's average fixed costs per unit will be

A company has monthly fixed costs of $112,500.The variable costs are $6.00 per unit.If the sales price of a unit is $19.00 and we sell 7,500 units,the company's average fixed costs per unit will be

Differentiate between fixed and variable costs and give an example of each.

London Plastics sells a product for $15.00 per unit.The product requires $4.00 per unit in variable costs to produce it.The company plans on selling 12,000 units of this product.If the monthly fixed costs are $84,000,the total sales revenue will be

London Plastics sells a product for $15.00 per unit.The product requires $4.00 per unit in variable costs to produce it.The company plans on selling 12,000 units of this product.If the monthly fixed costs are $84,000,the company's total variable costs will be