1. (TCO 1) A mixed cost function has a constant component of $20,000. If the total cost is $60,000 and the independent variable has the value 200, what is the slope coefficient?
2. (TCO 1) Companies that take advantage of quantity discounts in purchasing their materials have
3. (TCO 3) The best opportunity for cost reduction is
4. (TCO 3) Each month, Haddock Company has $275,000 total manufacturing costs (20% fixed) and $125,000 distribution and marketing costs (36% fixed). Haddock’s monthly sales are $500,000. The markup percentage on variable costs to arrive at the existing (target) selling price is
5. (TCO 3) Which of these do antitrust laws on pricing not cover?
6. (TCO 6) Homogeneity is used to
7. (TCO 6) Information about price discounting can be useful in analyzing revenues of customers if
8. (TCO 5) Natural Nutrients Bakery of Southfield produces three flavors of cat morsels that have budgeted and actual sales data for a bag of a dozen of its cat morsels as follows for December 20XX.
Budgeted Data
Actual Data
Tuna
ChikBits
ChezNips
Tuna
ChikBits
ChezNips
Bags
7,200
4,800
4,000
10,800
3,600
7,200
CM per bag
$2.50
$4.00
$5.00
$2.00
$3.00
$7.50
Cont. Margin
$18,000
$19,200
$20,000
$21,600
$10,800
$54,000
Total Contribution Margin
$57,200
$86,400
According to company forecasts, it was budgeting to earn a
25% market share in total units (bags) of specialty prepared cat
treats sold in December 20XX in Southfield. Reliable industry
sources indicate that the total number of bags of cat treats sold
for December 20XX in Southfield was 72,000.
The
sales-quantity variance for December 20XX for Natural
Nutrients Bakery is
9. (TCO 6) Natural Nutrients Bakery of Southfield produces three flavors of cat morsels that have budgeted and actual sales data for a bag of a dozen of its cat morsels as follows for December 20XX.
Budgeted Data
Actual Data
Tuna
ChikBits
ChezNips
Tuna
ChikBits
ChezNips
Bags
7,200
4,800
4,000
10,800
3,600
7,200
CM per bag
$2.50
$4.00
$5.00
$2.00
$3.00
$7.50
Cont. Margin
$18,000
$19,200
$20,000
$21,600
$10,800
$54,000
Total Contribution Margin
$57,200
$86,400
According to company forecasts, it was budgeting to earn a
25% market share in total units (bags) of specialty prepared cat
treats sold in December 20XX in Southfield. Reliable industry
sources indicate that the total number of bags of cat treats sold
for December 200X in Southfield was 72,000.
The
market-share variance for December 20XX for Natural
Nutrients Bakery is
10. (TCO 6) Fulbrite Fashions sells a line of women’s dresses. Fulbrite’s performance report for November is shown below. The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income.
Actual
Budget
Dresses sold
5,000
6,000
Sales
$235,000
$300,000
Variable costs
(145,000)
(180,000)
Contribution margin
$ 90,000
$120,000
Fixed costs
(84,000)
(80,000)
Operating income
$ 6,000
$ 40,000
The effect of the sales quantity variance on Fulbrite’s contribution margin for November is
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