80.2K

Verified Solution

Link Copied!

Marlowe Company currently leases a delivery truck from Burton Enterprises for a fee of $250 per month plus $o.40 per mile. Management is evaluating the desirability of switching to a modem, fael-efficient truck, which can be leasod from Goliath, Inc, fior a fee of $600 per month plus $0.05 per mile. All operating costs and fuel are included in the rental fees. In general, a lease from a. Goliath, Inc, is cconomically preferable to a lease from Burton Enterprises regardless of the monthly use. b. Barton Enterprises is eccnomically preferable below 1,000 miles per month. c. Burton Enterprises is economically pereferable to a lease from Goliath, Inc, regardless of the monthly use. d. Burton Enterprises is aconomically preferable above 1,000 miles per month 9. Inventory values caiculated using variable costing as opposed to absorption costing will generally be a. equal. b. less e greater d. twice as much. Which of the following statements is true? a. Joint costs are allocated to both main products and by-products b. Joint costs are allocated only to by-products c. Joint costs are not allocated because they cannot be attributed to specific units of output d. Joint costs are allocated only to main products 10. 11. A regression analysis of total labor costs (y) based upon the number of visitors (x) for the Wacky World Theme Park, yielded a coefficient of $2.75 on the number of visitors. The p-value associated with that coefficient was 0.02 and the R2-921. Based upon those results, we can conclude a. The coefficient on the number of visitors variable is statistically significant b. Visitors cause all labor costs c. The coefficient on the number of visitors variable is not statistically significant d. All of the above 12. Records indicate that average unit processing costs are $0.50 per account processed at an activity level of 32,000 accounts. When only 22,000 accounts are processed, the total cost of processing is $12,500. Given these data, at a budgeted level of 25,000 accounts: a. Processing costs are expected to total $8,750 b. Fixed processing costs are expected to be S10,400 c. The variable processing costs are expected to be $0.35 per account processed d. Processing costs are expected to total $13,000 13. At the break-even point of 1,500 units, variable costs are $60,00, and fixed costs are $30,000. What would operating income be if 1,501 units are sold? a. $20 b. $40 c. $90 d. $140

Answer & Explanation Solved by verified expert

See Answer