1. True or False: Making product changes during the design/research development phase is an example of external failure costs

2. True or False: The contribution margin ratio is calculated as sales less variable costs divided by operating income.

3. If production increases by 15%, how much will total variable costs generally react?

Remain the same

Decrease by 15%

Increase by 15%

Increase by 0%

4. For external reporting purposes, U.S. GAAP, requires companies to report their 10K using the _____________format. However, for internal management reporting, the ________________ format can be used.

goodness of fit, contribution margin

traditional, contribution margin

variable costing, traditional

contribution margin, traditional

5. Which of the following statements is true regarding regression analysis?

Regression analysis considers all of the data points for determining the line that best fits the data so it is usually less accurate than the high-low method.

Regression analysis uses a high low method to determine the R-Square.

Regression analysis can only be used by manufacturing companies to predict costs.

All of the above are true.

6. A product sells for $210 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to earn $34,800 in operating income, how many units must be sold to break even?

$6,500

$5,685

$500

$5,875

7. Beaver Company manufactures coffee tables and uses an activity-based costing system. Each coffee table consists of 30 separate parts totaling $210 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows:

Activity	Allocation Base	Cost Allocation Rate
Materials handling	Number of parts	$3.00 per part
Machining	Machine hours	$3.50 per machine hour
Assembling	Number of parts	$1.00 per part
Packaging	Number of finished units	$6.00 per finished unit

What is the cost of Materials handling per coffee table?

$90

$30

$13

$12

8. Using the same information from above, What is the cost of the assembly per coffee table?

Can you please do this all at once it is due really soon. Please have a brief explanation how/why the answer is right. Thank you so much, I appreciate it.