For Frank's Funky Sounds, straight-line depreciation on the trucks is a
answer
Fixed Cost
question
Assuming Blue ridge Railway is considering hiring a reservations agency to handle passenger reservations. the agency would charge a flat fee of $15,000 per month, plus $1 per passenger reservation. What is the total reservation cost if 150,000 passengers take the trip next month?
answer
$165,000
question
If White Mountain railway's fixed cost total $40,000 per month, the variable cost per passenger is $30.00, and tickets sell for $40, what is the contribution margin per unit and contribution margin ratio?
answer
$10 per passenger; 25%
question
If Rocky Mountain Railway's fixed cost total $70,000 per month, the variable cost per passenger is $20, and tickets sell for $100, how much revenue must the Railway generate to earn $180,000 in operating income per month?
answer
$312,500
question
IF White Mountain Railway's fixed costs total $40,000 per month, and the variable cost per passenger is $10, and tickets sell for $50, what is the breakeven point in units?
answer
1,000 passengers
question
On a CVP graph, the total cost line intersects the vertical (dollars) axis at
answer
The level of the fixed costs.
question
If a company increased its selling price per unit for Product A, the new break even point will..
answer
Decrease.
question
If a company increases its fixed cost for Product B, then the contribution margin per unit will..
answer
Remain the Same
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