The Jackson Cotton Candy Company had the following information available regarding last year’s operations: Sales(100,000 units)  $200,000 Variable costs  $120,000 Contribution margin  $80,000 Fixed costs  $50,000 Net Income  $30,000 If sales were to increase by 10%, what would be the effect on net income?

When deciding to lease a new cutting machine or continue using the old machine, the irrelevant cost is ________.

What is the minimum number if accounts that must be involved in any transaction?

Apex sold 2,000 of services to Gray Co on credit. Gray promised to pay for it next month. Apex will report a 2,000

Operating income plus total fixed costs equals the contribution margin.

Texas Computer Repair uses accrual basis accounting. A computer was repaired on May 15. The customer picked up the computer on June 1 and mailed the payment on June 5. On time computer repair received the check in the mail on June 10. The revenues should be recognized as earned on which date?

A learning curve is a function that measures how labor-hours per unit decrease, as units of production decrease.

If a company increases fixed costs, then the breakeven point will be lower.

Sunk costs are irrelevant to decision making.

Bricka Manufacturing produces 5-gallon water jugs. Total manufacturing costs are $200,000 when 20,000 holders are produced. Of this amount, total variable costs are $60,000. what are the total production costs when 30,000 holders are produced? (Assume both levels are within the relevant range)