Question

1. Based on the following information, what is the total cost?

Sales revenue	Variable cost	Fixed cost	Total cost	Contribution margin
$115,000	?	$21,000	?	$22,000

a. 112,000 b.115,000 c.none of these options are correct d.114,000

2. Rotide Inc. produces one type of product. Each unit requires $770 in variable costs and $550 in fixed costs. Currently, the breakeven point is 220 units. If Rotide Inc. produces one more unit, how much will the 221st unit sold contribute to the company's income?

a. 2.75 b.none of these options is correct c.2.50 d.3.50

3. The salary of marketing personnel is an example of which type of cost?

a. product cost b. period cost c.fixed cost d. step cost

4. The cost of depreciation of testing equipment used on an assembly line is an example of which type of cost?

a. product cost b. step cost c. fixed cost d. period cost

5. The depreciation cost on Google's computer equipment is an example of which type of cost?

a. product cost b. period cost c. fixed cost d. step cost

Answer 1

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