Week 1: Quiz
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If sales are $100,000, fixed expenses are $33,500, and the contribution margin is $40,000, then the net operating income must be:
Multiple Choice
$73,500.
$6,500.
$60,000.
$33,500.
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Week 1: Quiz
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Assume the following information for a merchandising company:
Contribution margin
Variable selling expenses
Net operating income
Fixed administrative expenses
Fixed selling expenses
Variable administrative
expenses
$ 115,000
$ 25,000
$ 30,000
$ ?
$ 40,000
$ 5,000
What is the amount of fixed administrative expenses?
Multiple Choice
$45,000
$85,000
$75,000
$55,000
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Week 1: Quiz
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Assume the following information:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing overhead
Variable selling expense
Fixed selling expense
Total selling expense
Variable administrative expense
Fixed administrative expense
Total administrative expense
$ 70,000
$ 42,000
$ 10,000
25,000
$ 35,000
$ 15,000
20,000
$ 35,000
$ 8,000
12,000
$ 20,000
What is the total product cost?
Multiple Choice
$112,000
$122,000
$147,000
$182,000
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Week 1: Quiz
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A merchandiser plans to sell 12,600 units next month at a selling price of $110 per unit. It also gathered the following cost estimates for next month:
Cost
Cost of goods sold
Advertising expense
Depreciation expense
Shipping expense
Administrative salaries
Sales commissions
Insurance expense
Cost Formula
$60 per unit sold
$150,000 per month
$70,000 per month
$100,000 per month + $10 per unit sold
$50,000 per month
5% of sales
$15,000 per month
What is the estimated total contribution margin for next month?
Multiple Choice
$434,700
$630,000
$334,700
$480,000
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Week 1: Quiz
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Skolnick Corporation has provided the following information:
Direct materials
Direct labor
Variable manufacturing
overhead
Cost per
Unit
$ 5.30
$ 4.80
$ 1.90
Fixed manufacturing overhead
Sales commissions
Variable administrative
expense
Fixed selling and
administrative expense
Cost per
Period
$ 1.50
$
133,000
$ 0.65
$ 41,800
Required:
a. If 9,500 units are produced, what is the total amount of direct manufacturing cost incurred? (Do not round
intermediate calculations.)
b. If 9,500 units are produced, what is the total amount of indirect manufacturing costs incurred?
a. Total direct manufacturing
cost
b. Total indirect
manufacturing cost
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