Sample Quiz #2 Questions – based on Chapters 5 and 6
1. If two [cost, activity] pairs are [$1,900, 170] and [$2,000,
210], what is the fixed cost amount in the linear equation of
cost behavior which is based on these two pairs of data?
A.
B.
C.
D.
$1,950
$2,000
$100
$1,475
2. Given these parameters for a company, what is the target
income?
A.
B.
C.
D.
$500
$2,500
$1,500
$3,750
Price per unit
Target income quantity
Variable cost per unit
Fixed cost
$50
75
$30
$1,000
3. The data for a company’s two products in the first period of
operation is the following:
Product
Price per unit
Variable cost per unit
Quantity made and sold
Alpha
$13.75
$10.00
600
Sigma
$68.75
$36.00
200
A.
B.
C.
D.
Fixed cost is $6,600. What is the breakeven quantity of each
product which preserves the product mix?
Answers
5/29/2016
1. D
2. A
3. A
450, 150
750, 250
900, 300
300, 100