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# A PUBLISHER SELLS A CALENDAR FOR \$6.50. THE VARIABLE COST PER CALENDAR IS \$3 AT

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Author: Joyce Buda
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http://theperfecthomework.com/a-publisher-sells-a-calendar-for-6-50-the-variable-cost-per-calendar-is-3-at-the-current-annual-sales-volume-of-200-000-calendars-at-this-volume-the-publisher-is-just-breaking-even/

A publisher sells a calendar for \$6.50. The variable cost percalendar is \$3 at the current annual sales volume of 200,000calendars; at this volume the publisher is just breaking even.What are the fixed costs?:Question 1 options:A) \$600,000B) \$700,000C) \$1,200,000D) \$1,300,0002Straight-line depreciation on a building would best be classifiedas aQuestion 2 options:A)variable cost.B) committed fixed costC) mixed cost..D) all of the above3The paper costs of a printing shop would best be classified as a:Question 3 options:A) variable cost.B) committed fixed cost.C) discretionary fixed cost.D) mixed cost.4If the fixed costs for a product decrease and the per unit variablecosts decrease, what will be the effect on the contributionmargin and the breakeven point, respectively?Question 4 options:A) Decrease/Decrease.B) Decrease/Increase. .C) Increase/Increase.D) Increase/Decrease5The Blue Company is planning to sell product Z for \$5 a unit.Variable costs are \$3 a unit and fixed costs are \$100,000. Whatmust the total sales be to break even?Question 5 options:A) \$160,000B) \$166,667C) \$250,000D) \$266,667SaveQuestion 6 (1 point)6Employee salaries which consist of a \$35,000 base amount plus12% of sales would best be classified as a:Question 6 options:A) variable cost.B) committed fixed cost..C) discretionary fixed cost.D) mixed costSaveQuestion 7 (1 point)7Within a "relevant range," which of the following statementsabout fixed costs is true?Question 7 options:A) Fixed costs are constant per unit of production.B) Fixed costs per unit will fall as production rises.C) Total fixed costs change as production volume changesD)Fixed costs are costs which are paid uniformly over ayearQuestion 8 (1 point)8Which of the following statements about variable costs is true?Question 8 options:A) Per unit variable costs are constant.B)Per unit variable costs always increase as productionincreases.C)Per unit variable costs always decrease as productionincreases.D) Variable costs are always product costsSaveQuestion 9 (1 point)9Budgetary slack refers to the:Question 9 options:A) use of padding to avoid unfavorable appraisals.B) increasing of sales prices to cover budget deficits.C) budgeted profit margin.D) "Other expenses" item of the budgetSaveQuestion 10 (1 point)10The budgeting process would normally begin with thepreparation of a:Question 10 options:A) cash budget..B) capital expenditure budget.C) sales budget.D) production budgetSave

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