Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Average Cost per UnitDirect materials$5.40Direct labor$3.55Variable manufacturing overhead$1.70Fixed manufacturing overhead$3.00Fixed selling expense$0.60Fixed administrative expense$0.40Sales commissions$1.00Variable administrative expense$0.40If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A. $19,250
B. $20,500
C. $23,000
D. $18,000
Answer: B
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Hannah's Homemade Cookies produces and sells delicious shortbread cookies. The cost of producing a bag of cookies is $.65 and the bag sells for $3.75. Hannah is considering processing all the cookies further by dipping them in chocolate. The additional processing costs would be $.50 per bag and the sales price of the chocolate-dipped cookies would be $4.20 per bag. If Hannah can sell 5,000 bags
of either type of cookie per year, which of the following statements is true if she chooses to process the cookies further? A) Net income would increase by $2,250 per year. B) Net income would decrease by $2,500 per year. C) Net income would decrease by $250 per year. D) Net income would increase by $15,250 per year.
Which of the following ensures fair competition and low prices to U.S. consumers?
a. Antiboycott Regulations b. Antitrust Laws c. Export Administration Act of 1985 d. Trading with the Enemy Act of 1917
The open price term requires a contract to mention a specific price
Indicate whether the statement is true or false
In the case James v. Meow Media, Inc., involving a lawsuit by the parents of students killed by a
classmate who regularly played and watched violent interactive videos produced and distributed by the defendants, the court of appeals ruled that: A) Even though a defendant's act may have breached a duty of care owed to the plaintiff, this breach is not actionable unless the plaintiff suffers actual injury. B) Based on the "foreseeability" test, the defendants did not owe a duty of care to the defendants. C) The defendants were guilty of negligence based on the "foreseeability" test because it is reasonable for the defendant to have anticipated that violent videos and games might incite a young person to violence. D) Based on the reasonable person test, there was no breach of the duty of care owed the plaintiff by the defendant.