91.Thompson Company manufactures and sells cookware. Because of current trends, it expects to increase sales by15% next year. If this expected level of production and sales occurs and plant expansion is not needed, how shouldthis increase affect next year’s total amounts for the following costs?
92.Given the following costs and activities for Dance Company electrical costs, use the high-low method to calculateDance’s variable electrical costs per machine hour.
CostsMachine Hours
Aug.$11,70015,000
Sept.$13,20017,500
Oct.$11,40014,500
a. $2.08
b. $6.00
c. $0.60
d. $1.20
93.Given the following cost data, what type of cost is shown?
Cost per Unit
|
Number of Units
|
$6,000
|
1
|
$3,000
|
2
|
$2,000
|
3
|
$1,500
|
4
|
a.mixed cost
b.variable cost
c.fixed cost
d.period cost
94.Given the following cost data, what type of cost is shown?
Total Cost
|
Number of Units
|
$8,000
|
1
|
$8,500
|
2
|
$9,000
|
3
|
$9,500
|
4
|
a.mixed cost
b.variable cost
c.fixed cost
d.period cost
95.Given the following cost data, what type of cost is shown?
Total Cost
|
Number of units
|
$20
|
1
|
$40
|
2
|
$60
|
3
|
$80
|
4
|
a.mixed cost
b.variable cost
c.fixed cost
d.period cost
96.The systematic examination of the relationships among selling prices, volume of sales and production, costs, andprofits is termed
a.contribution margin analysis
b.cost-volume-profit analysis
c.budgetary analysis
d.gross profit analysis
97.In cost-volume-profit analysis, all costs are classified into the following two categories:
a.mixed costs and variable costs
b.sunk costs and fixed costs
c.discretionary costs and sunk costs
d.variable costs and fixed costs
98.Contribution margin is
a.the excess of sales revenue over variable cost
b.another term for volume in the "cost-volume-profit" analysis
c.profit
d.the same as sales revenue
99.The contribution margin ratio is
a.the same as the variable cost ratio
b.the same as profit
c.the portion of equity contributed by the stockholders
d.the same as the profit-volume ratio
100.If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contributionmargin ratio?
a. 45%
b. 55%
c. 62%
d. 32%