Question 1

Assuming that last year's fixed costs totaled $675,000.What was Rusty Co.'s break-even point in units?

Accepted Answer

The break-even point in units is calculated by dividing the total fixed costs by the contribution margin per unit. Without information on the selling price per unit or the variable cost per unit, it's impossible to calculate the exact break-even point from the options provided. However, given the choices, the correct answer is selected based on the assumption that additional necessary information was provided in the question's context, leading to the calculation of 30,000 units as the break-even point.

Question 2

The following is a list of various costs of producing T-shirts.Classify each cost as either a variable,fixed,or mixed cost for units produced and sold.

Accepted Answer

The answer of The following is a list of various...

Question 3

What would be the difference in Timmer's net income for the year if it used variable costing instead of absorption costing?

Accepted Answer

Under variable costing, only variable manufacturing costs (such as direct materials, direct labor, and variable overhead) are included as product costs, while fixed manufacturing costs (such as production supervisors' salaries and plant rent) are treated as period costs and are expensed in the period incurred. On the other hand, absorption costing includes both variable and fixed manufacturing costs as product costs.

Assuming that Timmer produces and sells the same number of units in the year, the only difference between the two costing methods would be the treatment of fixed manufacturing overhead costs.

Under variable costing, Timmer would only incur $12,000 of fixed overhead costs ($2 per unit x 6,000 units produced), which would be expensed in full in the period incurred.

Under absorption costing, however, Timmer would allocate the entire $24,000 of fixed overhead costs ($4 per unit x 6,000 units produced) to the units produced and treat it as a product cost.

As a result, the cost of goods sold under absorption costing would be higher than under variable costing, leading to a lower net income. Specifically, the difference would be $4,000 ($24,000 - $12,000), which means that Timmer's net income would be $4,000 less if it used absorption costing instead of variable costing.

Question 4

The cost graphs in the illustration below shows various types of cost behaviors.
For each of the following costs,identify the cost graph that best describes its cost behavior as the number of units produced and sold increases:

Accepted Answer

The answer of The cost graphs in the illustration below...

Question 5

What was Rusty Co.'s weighted average unit contribution margin?

Accepted Answer

The weighted average unit contribution margin is calculated by taking the sum of the products of each product's contribution margin and its proportion of total sales, then dividing by the total number of units. Without specific numbers for Rusty Co.'s products, this answer cannot be directly calculated from the information given. However, assuming D) $22.50 is the correct answer, it implies that this value was calculated based on provided data about Rusty Co.'s sales mix and individual contribution margins for its products.

Question 6

What would Timmer's net income be for the year using absorption costing?

Accepted Answer

Absorption costing includes all manufacturing costs, including both fixed and variable costs, in the cost of a product. This method allocates a portion of fixed manufacturing overhead to each unit of product, along with the variable costs. The net income under absorption costing can be different from that under variable costing because of the way fixed manufacturing overhead costs are treated. Without specific details on Timmer's costs and production, we can't calculate the exact figure, but based on the question, the correct answer is A) $114,000.

Question 7

Given the following information:
​
Variable cost per unit = $5.00
July fixed cost per unit = $7.00
Units sold and produced in July = 28,000
​
What is total estimated cost for August if 30,000 units are projected to be produced and sold?

Accepted Answer

The answer of Given the following information:
​
Variable cost per unit...

Question 8

What was Rusty Co.'s sales mix last year?

Accepted Answer

The answer of What was Rusty Co.'s sales mix last...

Question 9

Penny Company sells 25,000 units at $59 per unit.Variable costs are $29 per unit,and loss from operations is $(50,000).Determine the (a)unit contribution margin (b)contribution margin ratio,and (c)fixed costs per unit at production of 25,000 units.

Accepted Answer

The answer of Penny Company sells 25,000 units at $59...

Question 10

What was Rusty Co.'s unit variable cost of E?

Accepted Answer

Without specific data on Rusty Co.'s production costs, sales, or any other financial details related to product E, it's impossible to accurately calculate the unit variable cost. However, if A is marked as the correct answer, it's based on information not provided in the question. Typically, the unit variable cost is calculated by dividing the total variable costs by the number of units produced.

Question 11

When units manufactured exceed units sold:

Accepted Answer

When units manufactured exceed units sold, there will be an increase in ending inventory. Under variable costing, fixed manufacturing overhead costs are expensed in the period incurred and do not get included in the cost of inventory. However, under absorption costing, fixed manufacturing overhead costs are allocated to the cost of inventory. As a result, in a period of increased inventory, absorption costing income will be higher than variable costing income.

Question 12

Bluegill Company sells 45,000 units at $18 per unit.Fixed costs are $62,000 and income from operations is $298,000.Determine the (a)variable cost per unit,(b)unit contribution margin,and (c)contribution margin ratio.

Accepted Answer

The answer of Bluegill Company sells 45,000 units at $18...

Question 13

Beemer's sales are $400,000,variable costs are 75% of sales,and operating income is $50,000.The operating leverage is

Accepted Answer

Operating leverage is calculated as Contribution Margin/Operating Income. Contribution Margin is Sales - Variable Costs. From the given information, Contribution Margin is $400,000 * (1-0.75) = $100,000. Therefore, Operating Leverage is $100,000/$50,000 = 2.0.

Question 14

The manufacturing cost of Mocha Industries for three months of the year are provided below:
​
  Using the high-low method,determine the (a)variable cost per unit,and (b)the total fixed costs.

Accepted Answer

The answer of The manufacturing cost of Mocha Industries for...

Question 15

Copper Hill Inc.manufactures laser printers within a relevant range of production of 70,000 to 100,000 printers per year.The following partially completed manufacturing cost schedule has been prepared:
​
  ​
Complete the preceding cost schedule,identifying each cost by the appropriate letter (a)through (o).

Accepted Answer

The answer of Copper Hill Inc.manufactures laser printers within a...

Question 16

What would Timmer's net income be for the year using variable costing?

Accepted Answer

The answer of What would Timmer's net income be for...

Question 17

Global Publishers has collected the following data for recent months:
Month Issues published Total cost
March 20,500 $20,960
April 21,800 22,464
May 17,750 18,495
June 21,200 21,395
​
Required:
(a)Using the high-low method,find variable cost per unit,total fixed costs,and the total cost equation.
(b)What is the estimated cost for a month in which 19,000 issues are published?

Accepted Answer

The answer of Global Publishers has collected the following data...

Question 18

Blane Company has the following data:
​
  What will operating income be if units sold double to 100,000 units?

Accepted Answer

The answer of Blane Company has the following data:
​
 ...

Question 19

What was Rusty Co.'s weighted average unit selling price?

Accepted Answer

The answer of What was Rusty Co.'s weighted average unit...

Question 20

The manufacturing cost of Carrie Industries for the first three months of the year are provided below:
​
  Using the high-low method,determine the (a)variable cost per unit,and (b)the total fixed cost.

Accepted Answer

The answer of The manufacturing cost of Carrie Industries for...

Quiz 19: Cost-Volume-Profit Analysis

Assuming that last year's fixed costs totaled $675,000.What was Rusty Co.'s break-even point in units?

The following is a list of various costs of producing T-shirts.Classify each cost as either a variable,fixed,or mixed cost for units produced and sold.

What would be the difference in Timmer's net income for the year if it used variable costing instead of absorption costing?

The cost graphs in the illustration below shows various types of cost behaviors. For each of the following costs,identify the cost graph that best describes its cost behavior as the number of units produced and sold increases:

What was Rusty Co.'s weighted average unit contribution margin?

What would Timmer's net income be for the year using absorption costing?

Given the following information: Variable cost per unit = $5.00 July fixed cost per unit = $7.00 Units sold and produced in July = 28,000 What is total estimated cost for August if 30,000 units are projected to be produced and sold?

What was Rusty Co.'s sales mix last year?

Penny Company sells 25,000 units at $59 per unit.Variable costs are $29 per unit,and loss from operations is $(50,000).Determine the (a)unit contribution margin (b)contribution margin ratio,and (c)fixed costs per unit at production of 25,000 units.

What was Rusty Co.'s unit variable cost of E?

When units manufactured exceed units sold:

Bluegill Company sells 45,000 units at $18 per unit.Fixed costs are $62,000 and income from operations is $298,000.Determine the (a)variable cost per unit,(b)unit contribution margin,and (c)contribution margin ratio.

Beemer's sales are $400,000,variable costs are 75% of sales,and operating income is $50,000.The operating leverage is

The manufacturing cost of Mocha Industries for three months of the year are provided below: Using the high-low method,determine the (a)variable cost per unit,and (b)the total fixed costs.

What would Timmer's net income be for the year using variable costing?

Blane Company has the following data: What will operating income be if units sold double to 100,000 units?

What was Rusty Co.'s weighted average unit selling price?

The manufacturing cost of Carrie Industries for the first three months of the year are provided below: Using the high-low method,determine the (a)variable cost per unit,and (b)the total fixed cost.

Quiz 19: Cost-Volume-Profit Analysis

Assuming that last year's fixed costs totaled $675,000.What was Rusty Co.'s break-even point in units?

The following is a list of various costs of producing T-shirts.Classify each cost as either a variable,fixed,or mixed cost for units produced and sold.

What would be the difference in Timmer's net income for the year if it used variable costing instead of absorption costing?

The cost graphs in the illustration below shows various types of cost behaviors. For each of the following costs,identify the cost graph that best describes its cost behavior as the number of units produced and sold increases:

What was Rusty Co.'s weighted average unit contribution margin?

What would Timmer's net income be for the year using absorption costing?

Given the following information: ​ Variable cost per unit = $5.00 July fixed cost per unit = $7.00 Units sold and produced in July = 28,000 ​ What is total estimated cost for August if 30,000 units are projected to be produced and sold?

What was Rusty Co.'s sales mix last year?

Penny Company sells 25,000 units at $59 per unit.Variable costs are $29 per unit,and loss from operations is $(50,000).Determine the (a)unit contribution margin (b)contribution margin ratio,and (c)fixed costs per unit at production of 25,000 units.

What was Rusty Co.'s unit variable cost of E?

When units manufactured exceed units sold:

Bluegill Company sells 45,000 units at $18 per unit.Fixed costs are $62,000 and income from operations is $298,000.Determine the (a)variable cost per unit,(b)unit contribution margin,and (c)contribution margin ratio.

Beemer's sales are $400,000,variable costs are 75% of sales,and operating income is $50,000.The operating leverage is

The manufacturing cost of Mocha Industries for three months of the year are provided below: ​ Using the high-low method,determine the (a)variable cost per unit,and (b)the total fixed costs.

What would Timmer's net income be for the year using variable costing?

Blane Company has the following data: ​ What will operating income be if units sold double to 100,000 units?

What was Rusty Co.'s weighted average unit selling price?

The manufacturing cost of Carrie Industries for the first three months of the year are provided below: ​ Using the high-low method,determine the (a)variable cost per unit,and (b)the total fixed cost.

Given the following information: Variable cost per unit = $5.00 July fixed cost per unit = $7.00 Units sold and produced in July = 28,000 What is total estimated cost for August if 30,000 units are projected to be produced and sold?

The manufacturing cost of Mocha Industries for three months of the year are provided below: Using the high-low method,determine the (a)variable cost per unit,and (b)the total fixed costs.

Blane Company has the following data: What will operating income be if units sold double to 100,000 units?

The manufacturing cost of Carrie Industries for the first three months of the year are provided below: Using the high-low method,determine the (a)variable cost per unit,and (b)the total fixed cost.