StarBucks and Donut Dunkins
Question 1 (1 point) Thomas Train has collected the following information over the last six months.
Month
Units produced
Total costs
March
10,000
$25,600
April
12,000
26,200
May
18,600
29,600
June
13,000
26,450
July
12,000
26,000
August
15,000
26,500
Using the high-low method, what is the variable cost per unit?
Your Answer: $0.8611
Question 1 options:
Answer
Question 2 (1 point) Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows: January
February
March
April
May
June
July
Number of rooms cleaned
250
160
200
150
285
170
260
Cleaning cost
$6,450
$4,060
$5,100
$4,100
$6,640
$4,200
$6,530
How much are estimated monthly variable costs using the high-low method?
Your Answer: $20.64
Question 2 options:
Answer
Question 3 (1 point) A cost is $3,600 at 1,000 units, $7,000 at 2,000 units, and $9,200 at 3,000 units. This cost is a
Question 3 options:
mixed cost
step cost
variable cost
fixed cost
Ans : Mixed Cost
Question 4 (1 point) Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $178,800, how many dollars of revenue must the company generate in order to reach the break-even point?
Your Answer: $ 1,117,500/-
Question 4 options:
Answer
Question 5 (1 point) Tim Taylor has written a self improvement book that has the following cost characteristics:
Selling Price
$16.00 per book
Variable cost per unit: Production
$4.00
Selling & administrative
2.00
Fixed costs: Production
$94,600 per year
Selling & administrative
20,400 per year
How many units must be sold to break-even?
Your Answer: 11,500 units
Question 5 options:
Answer
Question 6 (1 point) The use of fixed cost to increase
Month
Units produced
Total costs
March
10,000
$25,600
April
12,000
26,200
May
18,600
29,600
June
13,000
26,450
July
12,000
26,000
August
15,000
26,500
Using the high-low method, what is the variable cost per unit?
Your Answer: $0.8611
Question 1 options:
Answer
Question 2 (1 point) Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows: January
February
March
April
May
June
July
Number of rooms cleaned
250
160
200
150
285
170
260
Cleaning cost
$6,450
$4,060
$5,100
$4,100
$6,640
$4,200
$6,530
How much are estimated monthly variable costs using the high-low method?
Your Answer: $20.64
Question 2 options:
Answer
Question 3 (1 point) A cost is $3,600 at 1,000 units, $7,000 at 2,000 units, and $9,200 at 3,000 units. This cost is a
Question 3 options:
mixed cost
step cost
variable cost
fixed cost
Ans : Mixed Cost
Question 4 (1 point) Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $178,800, how many dollars of revenue must the company generate in order to reach the break-even point?
Your Answer: $ 1,117,500/-
Question 4 options:
Answer
Question 5 (1 point) Tim Taylor has written a self improvement book that has the following cost characteristics:
Selling Price
$16.00 per book
Variable cost per unit: Production
$4.00
Selling & administrative
2.00
Fixed costs: Production
$94,600 per year
Selling & administrative
20,400 per year
How many units must be sold to break-even?
Your Answer: 11,500 units
Question 5 options:
Answer
Question 6 (1 point) The use of fixed cost to increase