Test II Test Review
Identify whether the following (questions 1-6) is a variable, fixed, or mixed cost:
Eggs to bake a cake
Depreciation on ovens
Patents on recipes
Compensation for salesperson making salary and commission based on number of sales
Flour to bake cake
Use the following information to answer questions 7-10
What is the variable cost per unit using the high-low method?
What is the total fixed cost using the high-low method?
What is the total cost formula (y = mx + b) for the information above?
What would be the total cost if 1100 units were produced?
Use the following information to answer questions 11-20
ABC sold 200 units
Each unit sells for $100
Variable cost per unit is $30
Total fixed costs are $5000
Target profit is $3000
What is the contribution margin per unit?
What is the total contribution margin?
What is the contribution margin ratio?
What is the operating income?
What is the breakeven in units?
What is the breakeven in sales dollars?
What are the target units sales to earn the target profit?
What are the target sales dollars to earn the target profit?
What is the margin of safety in units?
What is the margin of safety in dollars?