2010 12 01 103330 mcq70

1187 Words Mar 26th, 2015 5 Pages
As sales exceed the break‑even point, a high contribution‑margin percentage

A. increases profits faster than does a low contribution-margin percentage

A compensation plan where the sales force is paid salary plus commission is a _______.

D. mixed cost

An increase in total variable cost usually indicates ___________.

B. the cost-driver activity level is increasing

The following information is for Kinsner Corporation: Total fixed costs $313,500 Variable costs per unit $99 Selling price per unit $154
If management has a targeted net
…show more content…
A.
$300,000

Save Missouri Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs are $0.50 per unit and fixed costs are $0.50 per unit. Current monthly sales are 173,000 units. Gates Company has contacted Missouri Company about purchasing 20,000 units at $1.00 each. Current sales would not be affected by the special order and no additional fixed costs would be incurred on the special order. Missouri Company 's change in profits if the order is accepted will be a _____:

C.
$10,000 increase

Save Dakota Corporation has been producing and selling 42,000 hats a year. The Dakota Corporation has the capacity to produce 52,000 hats with its present facilities. The following information is also available: Selling price per

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