Author:
Christine Farr

Question 1 (5 points)

Chesapeake Co. manufactures fine dining tables. During the most productive month of the year, 3,500 tables were manufactured at a total cost of $84,400. In its slowest month, the company made 1,100 tables at a cost of $46,000. Using the high-low method of cost estimation, total fixed costs in August for Chesapeake are:

Question 1 options:

$56000

$28400

$17000

Cannot be determined from data given

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Question 2 (5 points)

What is the break-even sales (units) for Morgana Video Edits LLC if fixed costs are $250,000, the unit selling price is $105, and the unit variable costs are $65,

Question 2 options:

3846 units

2381 units

10000 units

6250 units

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Question 3 (5 points)

What is the amount of sales required by Morgana Video Edits LLC to realize an operating income of $200,000 if fixed costs are $1,400,000, the unit selling price is $220, and the unit variable costs are $120,

Question 3 options:

14000 units

12000 units

16000 units

13333 units

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