Costs and Points Question

1. Product costs used for pricing and product-mix decisions generally include:
Answer
| | manufacturing costs only | | | design costs plus manufacturing costs | | | all costs incurred along the value chain | | | distribution costs only |
0.1 points
Question 4
Within the relevant range, if there is a change in the level of the cost driver, then:
Answer
| | fixed and variable costs per unit will change | | | fixed and variable costs per unit will remain the same | | | fixed costs per unit will remain the same and variable costs per unit will change | | | fixed costs per unit will change and variable costs per unit will remain the same |
0.1 points
Question 5 1.
Answer the following questions using the information below:

Pederson Company reported the following:

What is the amount of gross margin?
Answer
| | $1,750,000 | | | $3,525,000 | | | $5,405,000 | | | $1,645,000 |
0.1 points
Question 6 1.
Answer the following questions using the information below:

Assume the following cost information for Fernandez Company:

What is the number of units that must be sold to earn an after-tax net income of $42,000?
Answer
| | 3,750 units | | | 4,625 units | | | 3,050 units | | | 1,875 units |
0.1 points
Question 7 1.
Answer the following questions using the information below:

Kaiser 's Kraft Korner sells a single product. 7,000 units were sold resulting in $70,000 of sales revenue, $28,000 of variable costs, and $12,000 of fixed costs.

Breakeven point in units is:
Answer
| | 2,000 units | | | 3,000 units | | | 5,000 units | | | None of these answers are correct. |
0.1 points
Question 8 1.
Answer the following questions using the information below:

The following information is for the Jeffries Corporation:

If the sales mix shifts to four units of Product A and one unit of Product B, then