50.1K

Verified Solution

Link Copied!

The Knock-Your Socks-Off Sock Company sells socks for $10 with variable cost of $6. The fixed cost are $10, 000. The company is currently selling 2, 500 units. What is the contribution margin (CM) per unit and the CM ratio? a. $0, they are at breakeven b.$6 and 60% c.$4 and 40% d. $4 and 2.5% What is a company's break-even point in sales dollars if the sales price is $8 per unit, the contribution margin was $4 per unit, and you had already determined that 10, 000 units were required to break even? a. $80, 000 b. $8, 000 c. $4, 000 d. $12, 000 A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $720, 000 and direct labor hours would be 90, 000. Actual overhead costs incurred were $754, 400, and actual direct labor hours were 92, 000. Compute the predetermined overhead rate per direct labor hour. a. $7.83 b. $8.38 c $8.20 d. $8.00 If a we offer a cruise around Lake Dardanelle and rent for the boat in $10, 000 per month. We will have operating cost of $150per cruise. If we plan to do 30 cruises for the average month, what will be the total cost per month? a. $4, 500 b. $10, 000 c. $10, 150 d. $14, 500 Given the following cost and activity observations for Notwen Company's maintenance costs, use the high-low method to calculate Notwen's variable costs for maintenance. a. $5.05 b. $0.198 c. $4.20 d. $7.03 Given the above observations, what are the monthly fixed costs for maintenance? a. $11, 250 b. $4, 550 c. $3, 750 d. $2, 650

Answer & Explanation Solved by verified expert

See Answer