Managerial Accounting

For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10, income tax rate of 20%, targeted net income of $10,000.

Assume all other variables do not affect the cost volume profit relationship, if sales in units (quantities) increase, StartFragmentStartFragmentStartFragmenttotal fixed costs, in dollarsEndFragment

EndFragment

| 1. | increase |

| 2. | decrease |

| 3. | remain constants |

| 4. | we cannot find, we need more information |

Giving the following data for XY Company

year | 2008 | 2009 |

Total Sales | $145,0000 | $121,4000 |

Cost of goods sold | $880,000 | $738,400 |

Selling & Administrative Expenses | $92,500 | $80,700 |

Assume high-low method is adequate in this case, the total fixed costs of cost of goods sold is

| 1. | $10,000 |

| 2. | $12,000 |

| 3. | $15,000 |

| 4. | $20,000 |

Giving the following data for XY Company

year | 2008 | 2009 |

Total Sales | $145,0000 | $121,4000 |

Cost of goods sold | $880,000 | $738,400 |

Selling & Administrative Expenses | $92,500 | $80,700 |

Assume high-low method is adequate in this case, the total fixed costs of selling and administrative expenses is

| 1. | $10,000 |

| 2. | $12,000 |

| 3. | $15,000 |

| 4. | $20,000 |

For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10, income tax rate of 20%, targeted net income of $10,000.

Assume all other variables do not affect the cost volume profit relationship, if sales in units (quantities) increase, StartFragmentStartFragmentStartFragmenttotal fixed costs, in dollarsEndFragment

EndFragment

| 1. | increase |

| 2. | decrease |

| 3. | remain constants |

| 4. | we cannot find, we need more information |

For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10, selling price per unit $15., income tax rate of 20%, targeted net income of $10,000.

Assume all other...