Connor Company's fixed costs are $400,000, the unit selling price is $25, and the unit variable costs are $15. What is the break-even sales (units) if the variable costs are increased by $2? a. 30,770 units b. 50,000 units c. 40,000 units d. 26,667 units

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
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Chapter2: Building Blocks Of Managerial Accounting
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Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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Connor Company's fixed costs are $400,000, the unit selling price is $25, and the unit variable costs are $15. What is the break-even sales (units) if the variable costs are increased by $2?
a. 30,770 units
b. 50,000 units
c. 40,000 units
d. 26,667 units
 
Which of the following statements is correct using the direct costing concept?
a. All manufacturing costs are included in the calculation of cost of goods manufactured.
b. All manufacturing costs are considered period costs.
c. Only variable manufacturing costs are included in the calculation of cost of goods manufactured while fixed costs are considered period costs.
d. Only fixed costs are included in the calculation of cost of goods manufactured while variable costs are considered period costs.
 
Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired minimum rate of return of 15%.

The residual income for Mason is
a. $1,500
b. $0
c. $84,150
d. $(6,000)
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