A small company intends to increase the capacity of its bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $54,000 for A and $48,000 for B; variable costs per unit would be $10 for A and $13 for B; and revenue per unit would be $16 for A and $17 for B.a. Determine each alternative’s break-even point.

Fill in the Blank QuestionFill in the blank question.Maker's Company produces a product that has a variable cost of $4 per unit. The company's fixed costs are $40,000. The product sells for $12 per unit. The company is considering purchasing a new manufacturing machine which would improve efficiency. The new machine would decrease the variable cost to $3, but increase fixed costs by $5,000. The revised break-even point in dollars is $.

Fill in the Blank QuestionFill in the blank question.A company has fixed costs of $50,000 while manufacturing a product that has variable costs of $4 per unit and sells for $14 per unit. The break-even point is units.

Fill in the Blank QuestionFill in the blank question.RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 per unit. The company is considering purchasing a new manufacturing machine which would improve efficiency. The new machine would decrease the variable cost to $4, but increase fixed costs by $15,000. The revised break-even point in dollars is $.

________Cost is also known as Alternative Cost. a. Opportunity b. Actual c. Real d. Money 27.The additional cost incurred to produce an additional unit of output is______ a. Marginal cost b. Variable cost c. Fixed cost d. Opportunity cost 28__________means absence of competition. a. Monopoly b. Perfect c. Imperfect d. Oligopoly 29.A Cost not relevant to deciding whether to purchase a new machine is: a. The cost of the new machine b. Lower maintenance costs for the new machine c. The cost of the old machine d. Additional training required for operating the new machines 30.In ‘make or buy decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own_______________ a. Fixed cost b. Variable cost c. Total cost d. Prime cost 31Companies usually develop _______rather than single products a. Product families b. Product lines c. Product groupings d. Product images 32. Which of the following describes secondary data? a. data that does not provide any information b. data collected for another purposeata collected specifically for the purpose of the survey being undertaken d. data collected by post or telephone, not by personal interview 33.Which of the following would be classified as data? a. Number of purchase requisitions b. Analysis of wages into direct and indirect costs c. Table showing variances from budget d. Graph showing the number of labour hours worked 34. Which TWO of the following are included in the prime cost of a product? a. Direct material b. Direct labour c. Administration costs d. Production overheads 35. Which of the following describes cost centres? a. unit of product or service for which costs are ascertained b. amounts of expenditure attributable to various activities c. functions or locations for which costs are ascertained d. a section of an organization for which budgets are prepared and control exercised 36 Within time series analysis, which TWO of the following are concerned with long term movements/fluctuations in variables? a. Seasonal variations b. Cyclical variations c. Random variations d. The trend 37. Which TWO of the following statements are true in relation to spreadsheets? a. A spreadsheet consists of records and files. b. Most spreadsheets have a facility to allow data within them to be displayed graphically. c. A spreadsheet could be used to prepare a budgeted statement of profit or loss. d. A spreadsheet is the most suitable software for storing large volumes of data.

Consider the following production and cost data for two products, L and C: Product LProduct CContribution Margin per Unit$130$120Machine Setups Needed per Unit10 setups8 setupsThe company can only perform 65,000 machine setups each period due to limited skilled labour, and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? Question 6Answera.$910,000b.$975,000c.$1,820,000d.$845,000