Multiple Choice Review Questions And Answers

The previous machine was used to make product CAP till it broke down final week.

Sadly, the previous machine can’t be repaired. Administration has determined to purchase the brand new mannequin 280 machine. It has much less capability than the brand new mannequin 320 machine, however its capability is ample to proceed making product CAP. Administration additionally thought-about, however rejected, the choice of merely dropping product CAP. If that had been accomplished, as an alternative of investing $318,000 within the new machine, the cash might be invested in a mission that may return a complete Of $405,000. 19.In making the choice to purchase the mannequin 280 machine slightly than the mannequin 320 machine, the sunk value was: A.

$376,000 c. $405,000 D. $389,000 20. In making the choice to purchase the mannequin 280 machine slightly than the mannequin 320 machine, the differential value was: A. $58,000 B. $1 three,000 c. $29,000 D.

$71 ,OHO 21 . In making the choice to spend money on the mannequin 280 machine, the chance value was: A. 376,000 B. $389,000 Callahan Company is a wholesaler that sells a single product.

Administration has supplied the next value knowledge for TV ranges of month-to-month gross sales quantity.The corporate sells the product for $1 15. 80 per unit.

22. The very best estimate of the overall month-to-month fastened value is: A. $24,000 B. $478,050 c. $427,600 D. $528,500 23. Farm Company has supplied the next manufacturing and whole value knowledge for 2 ranges of month-to-month manufacturing quantity.

The corporate produces a single product. The very best estimate of the overall value to fabricate 2,300 items is closest to: A. $446,660 B. $465,840 c. $462,415 D. $478, 170 Questions 24-25 are based mostly on the next info Boeing Enterprises, Inc. , produces and sells a single product whose promoting worth is $130.

zero per unit and whose variable expense is $39. 00 per unit. The corporate’s month-to-month fastened expense is $509,600. 24. Assume the corporate’s month-to-month goal revenue is $1 1,000. The unit gross sales to achieve that concentrate on revenue is closest to: A. 7,692 B.

13,349 c. four,005 D. 5,721 25. Assume the corporate’s month-to-month goal revenue is $22,000. The greenback gross sales to achieve that concentrate on revenue is closest to: A. $1 B. $759,429 D.

$531,600 Gallagher Firm, which has just one product, has supplied the next ATA regarding its most up-to-date month of operations: 26.