QUESTION 8 fixed costs are $300,000 and the unit contribution margin is $10, what amount of units must be sold in order to realize an operating income of $100,000? a. 80,000 units 6.30,000 units c. 60,000 units d. 40,000 units QUESTION 9 The area where the salon line is below the total costs line on the cont volume profit chart represents: a the break-even point b. the maximum possible operating loss the total fixed costs Od the maximum possible operating Income QUESTION 10 Setting a product's price based on pricing offered by competitors is an example of which of the following methods of pricing? a. Bottleneck method b. Market method c. Cost plus method d. Activity based method QUESTION 11 When applying the total cost concept for pricing products, the market must cover the following: a. Only a profit Ob.Fixed costs only plus a profit c. All costs plus a profit d. Variable costs only plus a profit QUESTION 12 What is a bottleneck? a. A manufacturing strategy used to control the production process by eliminating excess inventory b. The point in the manufacturing process where demand for the product exceeds the ability to produce the product c. A narrow area in a plant layout often causing the production process to slow down due to the inability to move product d. The ability to produce above and beyond the product demand QUESTION 13 Which of the following is true of the production budget? a. It feeds the direct labor cost budget only. b. It does not feed any other cost budgets. c. It feeds the direct materials, direct labor, and manufacturing overhead cost budgets. d. It feeds the direct materials cost budget only