1. Option A has revenue of $300 and costs of S250. Option B has revenue of $250
ID: 2400157 • Letter: 1
Question
1. Option A has revenue of $300 and costs of S250. Option B has revenue of $250 and costs of $300 Option C has revenue of $200 and costs of $100. Compute the opportunity cost of option B, A. (S50) B. $50 C. $100 D. S150 B. $250 2. Which of the following is the main difference between the short term and the long term A. Costs of direct materials are controllable (i.e, can be adjusted) in the short term but not in the long term B. Costs of direct labor are controllable in the long term but not in the short term C. Costs of capacity resources are controllable in the short term but not in the long term D. Costs of capacity resources are controllable in the long term but not in the short term E. Both B and C 3. If total fixed costs decrease by s50, selling price per unit increases by $2, and unit variable cost increases by S1, which of the following is true? Unit Contribution Break-Even Margin Increase Increase Decrease Decrease Not enough information Volume Increase Decrease Increase Decrease 4. Estimate unit variable cost Month September October November December Total costs $70 $85 $55 $100 Aetivity volume in units 15 25 20 A. not enough information need to know the contribution margin statement in the relevant range B. $1.50/unit C. $2/unit D. $2.25/unit E. $3/unit s and variable costs are SExplanation / Answer
1)Opportunity cost is the amount of benefit forgone .If option B is not selected then the best alternative would have been selected that is option C .profit from C = 200-100 =100
opportunity cost for B= $ 100
correct option is " C"
2)correct option is E
3)correct option is "B"
Unit contribution will increase by = 2 -1 = $ 1
With decrease in fixed cost breakeven point will decrease .
4)Highest activity = 25
Lowest activity =5
change in cost at both activity= 85- 55 = 30
change in activity= 25-5 =20
variable cost per unit = 30/20 = $ 1.5 per unit
correct option is "B"
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.