Question 1: Under a relevant range of production, the production has
a. minimum quantities that cannot exceed
b. maximum quantities that cannot exceed
c. minimum and maximum quantities that cannot exceed
d. no minimum or maximum quantities
Question 2: Hanna Company has the following data
Year Operating profit Sales
1 50,000 1,000,000
2 100,000 1,200,000
The contribution margin ratio is
a. 25%
b. 35%
c. 50%
d. 75%
Question 3: Hanna Company has the following data
Year Operating profit Sales
1 50,000 1,000,000
2 100,000 1,200,000
The total fixed cost is
a. $100,000.00
b. $120,000.00
c. $180,000.00
d. $200,000.00
Question 4: Hanna Company has the following data
Year Operating profit Sales
1 50,000 1,000,000
2 100,000 1,200,000
The variable cost percentage of sales is
a. 25%
b. 35%
c. 50%
d. 75%
Question 5: The incremental costs are
a. only fixed costs
b. only variable costs
c. could be variable or fixed costs
d. non avoidable costs
Question 6: Tany Company operates a manufacturing facilities. The following information pertains to its normal production: Maximum manufacturing capacity per month is 20,000 units. Total variable costs for maximum capacity are $160,000. Total fixed costs per month are $400,000. Tany received an offer from a suppliers of 4,000 units. Determine the price that makes Tany indifferent to reject or not this offer
a. $28
b. $20
c. $12
d. $8