All of the following are assumptions about C-V-P analysis except:
a. Inventory levels will have significant fluctuations during the analysis period
b. Mixed costs can be separated into fixed and variable.
c. Sales and production are equal during the period.
d. The total contribution margin will be linear within the relevant range.
a
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Indicate whether the statement is true or false
The iceberg metaphor shows that many customers try to negotiate on price because:
A) price is often inflated to attempt to maximize profits for the company B) price is the most easily quantifiable characteristic of any product C) they were trained to negotiate on price and price alone D) they feel that they are not fulfilling their duties as buyers if they do not attempt to get lower prices E) they do not realize that other factors, such as service and terms, can be more important to long-term satisfaction
Which one of the following is NOT required in useful problem statements?
A. Having concrete measures D. Being based on objective research B. Suggesting realistic solutions E. Summarizing what is known C. Describing the current situation about the problem
Blatt Company, a manufacturer of slippers, began operations on June 1 of the current year. During this time, the company produced 210,000 units and sold 185,000 units at a sales price of $40 per unit. Cost information for this period is shown in the following table:Production costs? Direct materials$5.00 per unit Direct labor$4.75 per unit Variable overhead$302,000 in total Fixed overhead$405,000 in totalNon-production costs? Variable selling and administrative$9,000 in total Fixed selling and administrative$25,000 in totala. Prepare Blatt's December 31st income statement for the current year under absorption costing.b. Prepare Blatt's December 31st income statement for the current year under variable costing.
What will be an ideal response?