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a jobber located in a distant city. In a decision model analyzing
these alternatives, the opportunity cost would be
• Question 15 Multiple regression differs from simple regression
in that it
• Question 16 Gata Co. plans to discontinue a department with
$48,000 contribution to overhead, and allocated overhead of
$96,000, of which $42,000 cannot be eliminated. What would be
the effect of this discontinuance on Gata’s pretax profit?
• Question 17 A professional organization is planning to conduct
a series of one-day continuing education programs in various
cities. The projected costs related to these programs are
• Question 18 Rodder, Inc. manufactures a component in a router
assembly. The selling price and unit cost data for the component
are as follows:
• Question 19 Lincoln Company, a glove manufacturer, has
enough idle capacity available to accept a special order of 20,000
pairs of gloves at $12.00 a pair. The normal selling price is $20.00
a pair. Variable manufacturing costs are $9.00 a pair, and fixed
manufacturing costs are $3.00 a pair. Lincoln will not incur any
selling expenses as a result of the special order. What would be
the effect on operating income if the special order could be
accepted without affecting normal sales?
• Question 20 JacKue Co. plans to produce 200,000 pairs of roller
skates during January of next year. Planned production for
February is 250,000 pairs. Sales are forecasted at 180,000 pairs
for January and 240,000 pairs for February. Each pair of roller
skates has eight wheels. JacKue’s policy is to maintain 10% of the
next month’s production in inventory at the end of a month. How
many wheels should JacKue purchase during January?
• Question 21 Which of the following is a characteristic of a
flexible budget?
• Question 22 All else being equal, the breakeven point in units
will be higher if
• Question 23 The ratio of fixed costs to the contribution margin
is
• Question 24 Oslo Co.’s industrial photo-finishing division, Rho,
incurred the following costs and expenses in 2012: