OutlyTech Corp. expected to sell 24,000 telephone switches

QUESTION 41.Use the following to answer questions 4 and 5:OutlyTech Corp. expected to sell 24,000 telephone switches. Fixed costs were $12,150,000, unit sales price was$4,190, and unit variable costs were $1,440. OutlyTech’s margin of safety in units is calculated to be:A 20,887.2. 7.B 18,276.3. 7.C 19,581.8. 2.D 22,192.7. 3.1.QUESTION 5OutlyTech’s margin of safety in sales dollars is calculated to be:A $82,047,8. 26.B $76,577,9. 90.C $71,108,1. 13.D $92,987,5. 39.QUESTION 61.Use the following to answer questions 6-9:The sales and cost data for two companies in the transportation industry were asfollows:SalesVariable costsContributionmarginFixed costsOperating incomeX CompanyAmountPercent$120,000100(72,000)(60)48,00040(36,000)$ 12,000Y CompanyAmountPercent$120,000100(36,000)(30)84,00070(72,000)$12,000The annual breakeven point in sales dollars for X Company is calculated to be:A $90,00. 0.B $102,8. 57.C $91,65. 7.D $110,7. 69.1.QUESTION 7X Company’s operating leverage is calculated to be:A.B.C.D.1.5.4.6.3.5.QUESTION 8If the company were to increase sales by 5%, 0perating income would increase by:A $3,00. 0B.C.D.1.$240$2,000$2,400QUESTION 9Becasue of Company Y’s leverage factor, if sales decrease, its operating incomewould decrease at a higher rate than Company X.YesNoQUESTION 101.Use the following to answer questions 10 and 11:The following costs were for Optimal View Inc., a contact lens manufacturer:FixedOutputVariableTotalCostsCostsCosts3005,20012,00017,2003505,20014,00019,2004005,20016,00021,2004505,20018,00023,200At an output level of 500 lenses, per unit variable cost is calculated to be:A $50.. 00B $40.. 00C $45.D $35.1.QUESTION 11At an output level of 500 lenses, per unit total cost is calculated to be:A $50.. 40B $56.. 67C $45.. 85D $48.. 56QUESTION 121.Use the following information to answer questions 12 and 13.The following data relate to product no. 89 ofDes Moines Corporation:Direct material standard: 3 square feet each unit at $2.50 per square footDirect material purchased: 29,200 square feet at $2.60 per square footDirect material consumed: 29,200 square feetManufacturing activity: 9,600 units completedThe direct-material quantity variance is:$1,000Unfavorable$1,000 Favorable$400Unfavorable$599 Favorable1.QUESTION 13The direct-material price variance is:A $3,000. UnfavorableB $3,000. FavorableC $2,920. UnfavorableD $2,920. Favorable1.QUESTION 14Use the following information to complete questions 14 & 15. The following datarelate to product no. 33 of La Quinta Corporation:Direct labor standard: 5 hours at $14 per hourDirect labor used in production: 45,000 hours at a cost of $639,000Manufacturing activity: 8,900 units completedThe direct-labor rate variance is:A.B.C.$9,100 Favorable$9,100 Unfavorable$8,900UnfavorableD $9,000. UnfavorableQUESTION 151.The direct-labor efficiency variance is:A $7,000. UnfavorableB $7,000 Favorable.C $7,100 Favorable.D $7,100 Unfavorable.QUESTION 161.Use the following to answer questions 16 and 17:Kelvin Co. produces and sells socks. Variable costs are $4 per pair, and fixedcosts for the year total $90,000. The selling price is $6 per pair.The sales units required to make a before-tax profit of $12,000 are calculatedto be:A 51,000. unitsB 46,000. unitsC 51,500. units1.QUESTION 17The sales units required to make an after-tax profit of $15,000, given an income taxrate of forty percent, are calculated to be:A 58,000. unitsB 58,500. unitsC 57,500. unitsD 57,000. units1.QUESTION 18At the breakeven point, fixed cost is always:A Equal to the contribution. margin.B Less than the contribution. margin.C More than the contribution. margin.D More than the variable. cost.1.QUESTION 19If everthing else remains constant, a decrease in a variable cost per unit would causethe breakeven point (where net income is zero) to:A cannot tell without more. informationB increase.C remain the same.D decrease.QUESTION 201.Hubba Company has a current production capacity level of 200,000 units per year. At this level ofproduction, variable costs ar $.90 per unit and fixed costs ar .50 per unit for a total cost per unit of $1.40.Bubba Company has contacted Hubba Company about purchasing 20,000 units at $1.30 each. Current sales wouldnot be affected by the special order and no additional fixed costs would be incurred on the special order. HubbaCompany has sufficient capacity to fill this order. If Hubba Company decides to accept the special order, HubbaCompany’s total cost to make these units will be:(Hint: Do not use a full absorption approach and instead use an contribution income)A $25,0. 00B $20,0. 00C $18,0. 00D $19,0. 001.QUESTION 21Hubba should accept the special order.YesNo1.QUESTION 22When there is a scarce resource, the product that should be produced first is theproductA with the highest sales price per unit of scarce. resourceB with the highest contribution margin per unit of. scarce resourceC with the highest sales price per unit of scarce. resourceD with the lowest contribution margin.1.QUESTION 23Answer questions 23 – 26 based on the following chart:How much does the company estimate its fixed cost will be?1.QUESTION 24Based on the CVP Chart above, how many units must the company sell to breakeven?A 11,000. unitsB 10,000. unitsC 9,000. unitsD 8,000. units1.QUESTION 25Based on the CVP Chart above, what is the company’s selling price per unit?A.B.C.D.$10.50 per unit$10 per unit$11 per unit$9 per unitQUESTION 261.Based on the CVP Chart above, what is the company’s variable cost per unit?