Question: The Renaissance Man Clothing Company experienced the following costs in 2007:
There was no beginning inventory. During the year the company manufactured 67,000 units. If net income using variable and full costing was $245,000 and $205,700, respectively, how many units did the company sell in 2007?
A 61,760
B 73,000
C 72,240
D 61,000
Uma's Used Autos has fixed costs of $7,000 per month. If each car is sold for $350 more than Alma paid for it, how many cars must Uma sell in a month in order to break even?
A 20 cars
B 50 cars
C 5 cars
D 30 cars
Assume that 500,000 CDs are produced and 450,000 are sold in 2008. What is ending inventory under variable costing?
A $150,000
B $200,000
C $250,000
D $300,000
The Outdoor Adventure Company experienced the following costs in 2007:
There was no beginning inventory. During the year the company sold 172,000 units. If net income using full and variable costing was $824,000 and $789,000, respectively, how many units did the company produce in 2007?
A 173,813
B 174,800
C 177,263
D 169,200
The Captain Carl Company experienced the following costs in 2007:
During the year the company manufactured 50,000 units and sold 45,000 units. If net income for the year was $265,000 using full costing, what would net income be if the company used variable costing? Assume no beginning inventories.
A $250,000
B $265,000
C $270,000
D $450,000
Syed Company needs to reduce the selling price of its product in order to be competitive. Currently, Syed has fixed costs of $346,400 and variable costs per unit of $2.50. If Syed can sell 80,000 units, what price should it charge in order to break even?
A $7.44
B $4.33
C $6.83
D $17.05