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M3-AOES quiz

M3-AOES quiz

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Author: david utsey
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Q10-1: Compare fixed, variable, and mixed costs. 

Q10-2: What do we mean by a Relevant Range?

Q10-3: A professional services business has fixed costs of €150,000 and variable costs of €15 per hour. How much does average cost change between 12,000 or 15,000 units?

Q10-4: Use the following information to determine the breakeven in units, breakeven in £, the number of units to get close to the Target Profit, and the amount of £ estimated from the unit sensitivity analysis:
 
Fixed costs= £240,000

Selling price per unit= £18.00 

Variable costs per unit= £12.60 

Target profit= £120,000
 

Q10-5: Looking at Q10-4above, if expected sales are 50,000 units what is the margin of safety? 

Q10-6: BCD Inc sells its products for $12 each. The company’s volume has remained unchanged for some time at 10,000 units per month although it has spare capacity. Production costs are $10 per unit including fixed costs which average $3 per unit for the production volume. A customer has requested a special order of 2,000 of BCD’s products at a special price of $9. What should BCD do? Please show your work. 

Q11-1: Define standard cost. 

Q11-2: Compare job costing with process costing.


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