The relevant production range for Orleans Trailers, Inc. is between 130,000 units and 180,000 units per month. If the company produces beyond 180,000 units per month, ________
A) the fixed costs will remain the same, but the variable cost per unit may change
B) the fixed costs may change, but the variable cost per unit will remain the same
C) the fixed costs and the variable cost per unit will not change
D) both the fixed costs and the variable cost per unit may change
D
You might also like to view...
Hsu Company reported the following on its income statement: Income before income taxes $420,000 Income tax expense 120,000 Net income $300,000 An analysis of the income statement revealed that interest expense was $80,000. Hsu Company's times interest earned was
A) 8 times. B) 6.25 times. C) 5.25 times. D) 5 times.
Credit sales are recorded as:
A. Debit Cash, credit Service Revenue. B. Debit Cash, credit Deferred Revenue. C. Debit Accounts Receivable, credit Service Revenue. D. Debit Service Revenue, credit Accounts Receivable.
Rocca Hats, Inc has two product lines—batting helmets and football helmets
The income statement data for the most recent year is as follows: Total Batting Helmets Football Helmets Sales revenue $940,000 $600,000 $340,000 Variable costs (430,000 ) (150,000 ) (280,000 ) Contribution margin $510,000 $450,000 $60,000 Fixed costs (180,000 ) (90,000 ) (90,000 ) Operating income (loss) $330,000 $360,000 $(30,000 ) Assuming the football helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the football helmet line is used to double the production of batting helmets, operating income will be ________. A) $450,000 B) $180,000 C) $720,000 D) $360,000
Which one of the following statements is a key feature of both TQM and Six Sigma?
A) Quality is primarily the responsibility of all employees in the organization. B) Quality is primarily the responsibility of the quality control department. C) Quality is primarily the responsibility of the production department. D) Quality is primarily the responsibility of top management.