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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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