Quiz - Cost Analysis

Question 1

1.  Which of the following costs would be classified as a manufacturing overhead cost for a packaged foods production company?
   Answer
   

   		Wages for a salesperson
   		Pasta or rice
   		Utilities for the factory
   		Salary for an assembly line manager
   		Wages for an assembly machine operator
   		Two of the above are correct

Question 2

1. Which of the following costs would be classified as a fixed cost for a packaged foods production company?
   Answer
   

   		Wages for a salesperson
   		Pasta or rice
   		Utilities for the factory
   		Salary for an assembly line manager
   		Wages for an assembly machine operator
   		Two of the above are correct

Question 3

1.  Contribution margin is:
   Answer
   

   		Total sales – variable costs per unit
   		Sales price per unit – variable costs per unit– total fixed costs
   		Total sales + total variable costs + total fixed costs
   		Sales price per unit – variable cost per unit
   		Sales price per unit – fixed cost per unit

Question 4

1.  The Forrest Corporation had the following information available related to its operations: (a) unit sales price of $80, (b) variable cost per unit of $26 and (c) total fixed costs of $1,200. What is the company’s break-even point in units rounded to the nearest whole unit?
   Answer
   

Question 5

1.  What were your company’s (i.e. class section in Lemonade Tycoon) revenues for the most recent day of operations?
   Answer