If the unit selling

price is $500, the unit variable costs are $300, and the total monthly costs

are $300,000,

At the beginning of

the period, the

Company (Y) sells a

product for $6.25. The variable costs are $3.75 per unit. (Y)'s breakeven point

is 35,000 units.

The calculation of the

Contribution Margin ratio

(or %)

If the fixed costs are

$900,000 and the variable costs are a percentage of the unit selling price of

40%, then the break-even point in $ is:

The quantities (Qbep) needed to reach the

break-even point are equal to:

SuperShoes Ltd. incurs $1,050,000 of overhead

costs each year in its three main departments, manufacturing ($600,000),

quality controls ($300,000) and packing ($150,000).

The manufacturing department works 4,000 hours

per year, there are 600 quality controls per year, and the packing department

packs 1,000 orders per year.

Information about SuperShoes’s two products MagicFlipFlop

& CarbonFlyer is disclosed in the following chart:

Using ABC, what is the unit cost of the cost

driver for the Packing activity?

SuperShoes Ltd. incurs $1,050,000 of overhead

costs each year in its three main departments, manufacturing ($600,000),

quality controls ($300,000) and packing ($150,000).

The manufacturing department works 4,000 hours

per year, there are 600 quality controls per year, and the packing department

packs 1,000 orders per year.

Information about SuperShoes’s two products MagicFlipFlop

& CarbonFlyer is disclosed in the following chart:

Using ABC, what is the unit cost of the cost

driver for the Quality Control activity?

Which of the following corresponds to an activity

in the ABC method?

For the 'placing orders' activity, which cost

driver seems the most relevant?