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	300	170	260
Cleaning cost	$6,450	$4,060	$5,100	$4,100	$6,640	$4,200	$6,530

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

Your Answer:Question 2 options:

Answer

Question 1 (1 point) Thomas Train has collected the following information over the last six months. Month March April May June July August Units produced 10,000 12,000 18,400 13,000 12,000 15,000 Total costs $25,600 26,200 29,200 26,450 26,000 26,500 Using the high-low method, what is the variable cost per unit? Your Answer: Question 1 options: Answer Save 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 Number of rooms cleaned Cleaning cost February March April May June July 250 160 200 150 300 170 260 $6,450 $4,060 $5,100 $4,100 $6,640 $4,200 $6,530 How much are estimated monthly variable costs using the high-low method? Your Answer: Question 2 options: Answer Save Question 3 (1 point) A cost is $3,600 at 1,000 units, $7,000 at 2,000 units, and $9,200 at 3,000 units. This cost is a Question 3 options: mixed cost step cost variable cost fixed cost Save Question 4 (1 point) Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $182,300, how many dollars of revenue must the company generate in order to reach the break-even point? Your Answer: Question 4 options: Answer Save Question 5 (1 point) Tim Taylor has written a self improvement book that has the following cost characteristics: Selling Price Variable cost per unit: Production Selling & administrative Fixed costs: Production Selling & administrative How many units must be sold to break-even? $16.00 per book $4.00 2.00 $93,200 per year 26,400 per year Your Answer: Question 5 options: Answer Save Question 6 (1 point) The use of fixed cost to increase profits at a rate faster than sales increase is called: Question 6 options: \"What if \" analysis C-V-P analysis operating leverage contribution margin approach Save Question 7 (1 point) Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $100, unit variable cost is $40, and the fixed costs per month are $5,000. The margin of safety is: Your Answer: Question 7 options: Answer Save Question 8 (1 point) Which of the following statements about the relevant range is true? Question 8 options: Cost functions outside the relevant range are usually linear The relevant range is the normal length of time in a company's accounting period Estimates outside the relevant range are useful Cost functions within the relevant range are assumed to be linear