True or False questions

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following Information is provided for the month of March: 1) Actual Calamine Capity Sales in pounds 3800 lbs. 3980 lbs. Price per pound $3.00 $2.90 Variable cost per pound 1.00 2.20 Contribution margin $2.00 $0.70 Budget Calamine Capity 4,400 lbs. 3,300 lbs $2.00 $3.00 1.00 1.50 $1.00 $1.50 Budgeted and actual fixed corporate-sustaining costs are $1,850 and $2,300, respectively. What is the actual contribution margin for the month? A) $9900 B) $9770 C) $10,386 D) $12,236 2) A financial analyst for Simon Manufacturing prepared the following report: 2 2) Customers B D E F G H 1 J Customer- Level Operating Income $5041.00 $4202.00 $3368.00 $1069.50 $984.80 $844.80 $336.60 $252.00 ($168.00) (5676.00) Customer Revenue $26,250 $30,000 $75,000 $7,300 $5,100 $4,400 $1,800 $4,500 $2,400 $2,600 a What is the cumulative customer-level operating income as a percentage of customer level operating income for the top 4 most profitable (operating income) customers? A) 79.1% B) 89.7% C) 17.4% D) 85.0% 3) 3) When the cost pools are homogeneous which of the following will be true? A) the number of needed cost pools will be more B) managers should not allocate both variable costs and costs that are fixed in the short-run C) the costs in the cost pool have a similar cause-and-effect or benefits-received relationship with the cost-allocation base D) there will be a greater variety of cause-and-effect, benefits-received, or fair-and-equitable relationship with the cost-allocation base 1