tasty treats is a snow cone stand near the local park
Accounting
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tasty treats is a snow cone stand near the local park. To plan for the future, it wants to determine its cost behavior patterns.
Month #cones total cost
J 6400 5980
F 7000 6400
M 6200 5840
A 6900 6330
M 7600 6820
J 7250 6575
Using the high-low method, the monthly operating costs-- if sunny sells 8,000 snow cones in a month -- are
(a) $7,100
(b) $5,600
(c) $1,500
(d) $10,920
Doggie pals produces 100,00 dog collars each month that give off a fresh scent to keep your dog smelling clean between baths. Total manufacturing costs are $200,000. Of this amount, $150,000 are variable costs. What are the total production costs when 125,000 collars are produced?
(a) $237,000
(b) $187,500
(c) $387,500
(d) $250,000
Which method are managers using when they use their judgement to classify costs as variable, fixed, or mixed?
(a) account analysis
(d) low high method
(c) regression analysis
(d) high low method
Renting a scooter and paying $30 per day plus $.20 per mile driven is an example of what type of cost?
(a) mixed cost
(b) variable cost
(c) conversion cost
(d) fixed cost
Jeans fitness club provides monthly memberships as well as personal training sessions. The personal trainers earn 50% of the revenue for all personal training sessions. The fitness club also sells nutrition products. Jean's general ledger accounts indicate the following for the year. The front desk staff wages expense remains the same throughout the year
Membership rev $140,000
Personal Train Rev $75,000
Product Sales $65,000
Cost of product sold $35,000
Front desk wages $12,000
personal trainer wages ?
space rental expense $11,000
straight line depreciation $6,000
Rental insurance expense $3,000
If a contribution margin income statement is prepared for the year, what is the amount of total revenue?
(a) $315,000
(b) $215,000
(c) $140,000
(d) $280,000
tasty treats is a snow cone stand near the local park. To plan for the future, it wants to determine its cost behavior patterns.
Month #cones total cost
J 6400 5980
F 7000 6400
M 6200 5840
A 6900 6330
M 7600 6820
J 7250 6575
Using the high-low method, the fixed costs for a month are
(a) $1,500
(b) $980
(c) $5,320
(d) $12,660
With respect to total variable costs, which of the following statements is true?
(a) they will decrease as production decreases
(b) they will decrease as production increases
(c) they will increase as production decreases
(d) they will remain the same as production levels change
Your boss wants you to analyze the relationship between the company's monthly operating costs and the current cost driver she has chosen. You run a regression analysis:
intercept coefficient= 653,434
x variable 1 coefficient= 5.76
r-square= .3784
What is your company's monthly cost equation?
(a) y= $653,434 + $5.76
(b) y= $5.76x + $653,434
(c) y= $0.38x + $576
(d) y= $0/38x + $653,434
Total fixed costs for Toys and Trinkets Inc are $88,000. Total costs, including both fixed and variable, are $155,000 if $268,000 units are produced. The total variable costs at a level of 275,000 units would be
(a) $151,055
(b) $159,049
(c) $90,299
(d) $68,750
To find a firm's operating leverage factor at a given level of sales, you
(a) divide variable expenses by fixed expenses
(b) divide relatively operating income by contribution margin
(c) divide the contribution margin by fixed expenses
(d) divide the contribution margin by operating income
