You are a bake who makes both bagels and donuts.  If the price of donuts increases, which of the following scenarios is most likely to occur?

Assume Ford and Chevy are substitutes.  Which of the following statements is true?

Sunripe Corporation manufactures and sells two types of beach towels, standard and deluxe. Sunripe expects the following operating results next year:     Problem Info   Standard Deluxe   Total sales $ 450,000   $ 50,000   Total variable expenses $ 360,000   $ 20,000       Sunripe expects to have a total of $57,600 in fixed expenses next year. What is Sunripe’s overall break-even point next year in sales dollars?

Many bird community sampling techniques rely on the observer to be able to accurately estimate the distance from the observer to every bird.  Select the community sampling technique below that requires the least or no distance estimation by the observer. 

Kozloff Cheesy Wedding Company makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Problem Info Activity Cost Pools Activity Rate Size-related $1.16 per guest Complexity-related $33.47 per tier Order-related $65.95 per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The measure of complexity is the number of tiers in the cake. The activity measure for the order-related cost pool is the number of orders. (Each wedding involves one order.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Problem Info   Winterhalter Wedding Manliguis Wedding Number of reception guests 45 183 Number of tiers on the cake 4 5 Cost of purchased decorations for cake $19.65 $61.84 Assuming that the company charges $613.98 for the Manliguis wedding cake, what would be the overall margin on the order?

Matt Company uses activity-based costing. The company has three products: A, B and C. The annual production and sales of Product A is 8,000 units, Product B is 6,000 units and Product C is 4,000 units. There are three activity cost pools, with total cost and total activity as follows: Problem Info       Total Activity   Activity Cost Pool Total Cost Product A Product B Product C Activity 1 $20,000 100 400 500 Activity 2 $37,000 800 200 1,000 Activity 3 $91,200 800 3,000 3,800 The activity-based costing cost per unit of Product A is

Which of the following segment performance measures will decrease if there is an increase in the interest expense for that segment?   Problem Info   Return on Investment Residual Income A) Yes Yes B) No Yes C) Yes No D) No No

The LaGrange Corporation had the following budgeted sales for the first half of the current year: Problem Info     Cash Sales   Credit Sales January $ 70,000 $ 340,000 February $ 50,000 $ 190,000 March $ 40,000 $ 135,000 April $ 35,000 $ 120,000 May $ 45,000 $ 160,000 June $ 40,000 $ 140,000   The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on sales: 60% in month of sale 30% in month following sale 10% in second month following sale The accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be:

The Jabba Corporation manufactures the “Snack Buster” which consists of a wooden snack chip bowl with an attached porcelain dip bowl. Which of the following would be relevant in Jabba’s decision to make the dip bowls or buy them from an outside supplier?   Problem Info   Fixed overhead cost that can be eliminated if the bowls are purchased from the outside supplier The variable selling cost of the Snack Buster A) Yes Yes B) Yes No C) No Yes D) No No

The following information relates to last year’s operations at the Legumes Division of Gervani Corporation: Problem Info Item Minimum required rate of return   12 % Return on investment (ROI)   15 % Sales $ 900,000   Turnover (on operating assets)   3 times   What was the Legume Division’s net operating income last year?