Questions from Cost Accounting

Q: The Kenosha Company has three product lines of beer mugs—A

The Kenosha Company has three product lines of beer mugs—A, B, and C—with contribution margins of $5, $4, and $3, respectively. The president foresees sales of 175,000 units in the coming period, cons...

Q: Genesee Music Society is a not-for-profit organization that

Genesee Music Society is a not-for-profit organization that brings guest artists to the community’s greater metropolitan area. The music society just bought a small concert hall in the center of town...

Q: Explain the term supply chain and its importance to cost management.

Explain the term supply chain and its importance to cost management.

Q: Welch Men’s Clothing’s revenues and cost data for 2017 are as follows

Welch Men’s Clothing’s revenues and cost data for 2017 are as follows: Mr. Welch, the owner of the store, is unhappy with the operating results. An analysis of oth...

Q: Applewhite Corporation, a manufacturing company, is analyzing its cost structure

Applewhite Corporation, a manufacturing company, is analyzing its cost structure in a project to achieve some cost savings. Which of the following statements is/are correct? I. The cost of the direct...

Q: Jack’s Jax has total fixed costs of $25,000.

Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income tax rate is 25% and the selling price of a box of Jax is $20, how many boxes of Jax would the compa...

Q: During the current year, XYZ Company increased its variable SG&

During the current year, XYZ Company increased its variable SG&A expenses while keeping fixed SG&A expenses the same. As a result, XYZ’s: a. Contribution margin and gross margin will be lower. b. Cont...

Q: Under the contribution income statement, a company’s contribution margin will be

Under the contribution income statement, a company’s contribution margin will be: a. Higher if fixed SG&A costs decrease. b. Higher if variable SG&A costs increase. c. Lower if fixed manufacturing ove...

Q: A company needs to sell 10,000 units of its only

A company needs to sell 10,000 units of its only product in order to break even. Fixed costs are $110,000, and the per unit selling price and variable costs are $20 and $9, respectively. If total sale...

Q: Once a company exceeds its breakeven level, operating income can be

Once a company exceeds its breakeven level, operating income can be calculated by multiplying: a. The sales price by unit sales in excess of breakeven units. b. Unit sales by the difference between th...