Hevesy Inc. produces and sells a single product. The selling price of the product is $200.00 per unit and its variable cost is $80.00 per unit. The fixed expense is $300,000 per month. The break-even in monthly unit sales is closest to:
A. 2,500 B. 1,500 C. 3,750 D. 2,250
A $2.00 increase in a product's variable expense per unit accompanied by a $2.00 increase in its selling price per unit will the:
Increase the contribution margin dollars
Decrease the contribution margin dollars
Have not effect on the break-even volume
Have no effect on the contribution margin ratio
Speckman Enterprises, Inc., produces and sells a single product whose selling price is $200.00 per unit and whose variable expense is $68.00 per unit. The company's monthly fixed expense is $514,800. Assume the company's target profit is $11,000. The unit sales to attain that target profit is closest to:
2,629 units
3,983 units
4,781 units
7,732 units
A favorable labor rate variance indicates that
Actual hours exceed standard hours
Standard hours exceed actual hours
The actual rate exceeds the standard rate
The standard rate exceeds the actual rate
Elliott Corporation makes and sells a single product. Last period the company's labor rate variance was $14,400 unfavorable. During the period, the company worked 36,000 actual direct labor-hours at an actual cost of $338,400. The standard labor rate for the product in dollars per hour is:
A. $9.00 B. $9.40 C. $8.50 D. $8.10
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