Question 1 (1 point)

Thomas Train has collected the following information over the last six months.

Month Units produced Total costs

March 10,000 $25,600

April 12,00 26,200

May 19,600 29,600

June 13,000 26,450

July 12,000 26,000

August 15,000 26,500

Using the high-low method, what is the variable cost per unit?

Round to two decimal places.

Question 2 (1 point)

Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:

January February March April May June July

Number of rooms cleaned 250 160 200 150 270 170 260

Cleaning cost $6,450 $4,060 $5,100 $4,100 $7,000 $4,200 $6,530

How much are estimated monthly variable costs using the high-low method?

Round to two decimal places.

Question 4(1 point)

Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $190,800, how many dollars of revenue must the company generate in order to reach the break-even point?

Round to two decimal places.

Your Answer:

Question 5 (1 point)

Tim Taylor has written a self improvement book that has the following cost characteristics:

Selling Price $16.00 per book

Variable cost per unit:

Production $4.00

Selling & administrative 2.00

Fixed costs:

Production $95,600 per year

Selling & administrative 28,200 per year

How many units must be sold to break-even?

Round to two decimal places.

Your Answer:

Question 7(1 point)

Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $100, unit variable cost is $35, and the fixed costs per month are $5,000. Themargin of safety in terms of sales revenue is:

Round to two decimal places.

Your Answer: