Questions from Managerial Accounting

Q: Determine whether each of the following is best described as a fixed

Determine whether each of the following is best described as a fixed, variable, or mixed cost with respect to product units. 1. Rubber used to manufacture athletic shoes. 2. Maintenance of factory mac...

Q: The following information is available for a company’s maintenance cost over the

The following information is available for a company’s maintenance cost over the last seven months. Using the high-low method, estimate both the fixed and variable components of its...

Q: This scatter diagram reflects past maintenance hours and their corresponding maintenance costs

This scatter diagram reflects past maintenance hours and their corresponding maintenance costs. 1. Draw an estimated line of cost behavior.2. Estimate the fixed and variable components of maintenanc...

Q: Compute and interpret the contribution margin ratio using the following data:

Compute and interpret the contribution margin ratio using the following data: sales, $5,000; total variable cost, $3,000.

Q: Surgery Center is an outpatient surgical clinic that was profitable for many

Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 40%. As a result, the clinic wants to better understand its co...

Q: SBD Phone Company sells its cordless phone for $90 per unit

SBD Phone Company sells its cordless phone for $90 per unit. Fixed costs total $162,000, and variable costs are $36 per unit. Determine the (1) contribution margin per unit and (2) break-even point in...

Q: Many companies acquire software to help them monitor and control their costs

Many companies acquire software to help them monitor and control their costs and as an aid totheir accounting systems. One company that supplies such software is proDacapo (prodacapo.com). There are...

Q: How will the break-even point in units change in response

How will the break-even point in units change in response to each of the following independent changes in selling price per unit, variable cost per unit, or total fixed costs? Use I for increase and D...

Q: Refer to QS 5-6. Determine the (1)

Refer to QS 5-6. Determine the (1) contribution margin ratio and (2) break-even point in dollars.

Q: Assume that SBD Phone Co. is subject to a 30%

Assume that SBD Phone Co. is subject to a 30% income tax rate. Compute the units of product that must be sold to earn after-tax income of $140,000. (Round to the nearest whole unit.)