题目内容

Steel Fabricating, Inc. manufactures furniture at its plants in Akron, Greensboro, and Schenectady. The company prepares monthly income statements segmented by plant. These income statements are organized to disclose contribution margin, performance margin, and responsibility margin for each plant in addition to operating income for the company as a whole. The company's CEO must decide which of the three factories to expand in order to increase productive capacity. She should be most interested in the: ( )

A. Sales of each factory.
B. Contribution margin at each factory.
C. Fixed costs traceable to each factory.
D. Responsibility margins of each factory.

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Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. What is the monthly sales volume in dollars necessary to break-even? ( )

A. $82,500.
B. $66,500.
C. $97,059.
D. $77,500.

Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. How many units must be sold each month to earn a monthly operating income of $8,000? ( )

A. 971.
B. 1,442
C. 122,500.
D. 353

Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. What will be the monthly margin of safety (in dollars) if 1,800 units are sold each month? ( )

A. $82,500.
B. $70,500.
C. $12,000.
D. $16,500.

Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. What will be Mitchell's monthly operating income if 1,800 units are sold each month? ( )

A. $153,000.
B. $136,500.
C. $30,600.
D. $14,100.

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