Author: Anonymous

Lorri’s income statement is as follows: Sales (5,000 units) $75,000 Less variable costs – 24,000 Contribution margin $51,000 Less fixed costs – 12,000 Net income $ 39,000 If sales increase by 1,000 units, profits will:

Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2016 55,000 $195,000 2017 70,000 $210,000 2018 50,000 $180,000 2019 65,000 $205,000 2020 85,000 $225,150 What is the best estimate of total operating expenses for 2021 using the high-low method based on total expected miles of 60,000?

If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will

The balance in the Work in Process Inventory account on April 1 was $26,800, and the balance on April 30 was $22,600. Costs incurred during the month were as follows: direct materials, $41,250; direct labor, $21,300; and overhead, $32,600.What amount was transferred to the Finished Goods Inventory account for April? Select one:

Company X has a degree of operating leverage of 10, whereas, Company Y has a degree of operating leverage of 5. Each company has the same level of sales.Which of the following statements is true?

If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will

Soil Company sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then Select one:

Dana Company sells one product at a price of $50 per unit. Variable expenses are 40 percent of sales, and fixed expenses are $50,000. The sales dollars level required to break even are:

The following monthly data are available for the Sumslow Company and its only product: Unit selling price $36 Unit variable expenses $28 Total fixed expenses $51,000 Actual sales for the month of March 7,000 units The margin of safety for the company during March was:

Purple Company’s contribution margin ratio is 30%. If the degree of operating leverage is 6 at the $125,000 sales level, before-tax profit must equal: