A company can sell a product as is for $40 per unit or process it further for an additional variable cost of $6 per unit and sell it for $44. Fixed costs are unchanged. What should the company do?

A company has sales of $400,000 and variable costs of $280,000. What is the contribution margin ratio?

A service company uses time-and-material pricing. The labour rate is $60 per hour and includes profit. The material loading charge is 30 percent of direct materials. A job requires 6 labour hours and $500 of direct materials. What is the total price charged to the customer?

Which of the following best describes absorption cost-plus pricing?

A product can be sold for $22 per unit as is, or processed further at an additional variable cost of $5 per unit and then sold for $26 per unit. Fixed costs are unchanged. Which alternative yields higher operating income per unit, and by how much?

The production budget is prepared before the sales budget.

A company expects sales revenue of $520,000 for August. Variable costs are 62% of sales and fixed costs are $118,000. What is the budgeted operating income for August?

A company expects a 20 percent return on investment of $500,000. It expects to sell 10,000 units. What is the required profit per unit to meet this target?

Under variable cost-plus pricing, if actual sales volume is lower than expected, the fixed costs may not be fully covered.

Each unit of product requires 4 kilograms of direct material. Budgeted production for July is 8,500 units. The company plans to have 9,000 kilograms of material on hand at the end of July and had 7,200 kilograms on hand at the beginning of July. How many kilograms of material should be purchased in July?