1. Fixed costs to manufacture custom jeans from Levi's are $36. If the total cost to make 4 pairs of jeans is $45, what is the marginal cost of a 5th pair of jeans?
a. $3.00
b. $8.00
c. $4.00
d. $2.25
2. Which of the following is not both a product cost and a variable cost?
a. Base pay for a factory line worker's overtime
b. Shoelaces used in the manufacturing of tennis shoes
c. Salary of assembly-line workers at a BMW plant
d. Ink used in a "Born on MM/DD/YYYY" stamp at a bottling facility
3. Harley Davidson began February with finished-goods inventory of $2,400,000. The finished-goods inventory at the end of February was $3,100,000 and the cost of goods sold during the month was $12,300,000. The cost of goods manufactured during July was? a. $13,000,000
b. $11,000,000
c. $ 9,000,000
d. $ 6,800,000
e. Some other amount
4. Oakley manufactures sunglasses and reported sales revenues of $210,000 and total costs of $56,000 this year. Oakley incurs variable cost that is 10% of sales. What would the total costs be if sales were $168,000? a. $16,800
b. $32,000
c. $41,400
d. $51,800
e. Some other amount