Question Details

Which cost estimation method is being used by Isondo's TV and Appliance Store



Isondo's TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2015 operations.

	Sales (1,200 televisions)	$ 1,200,000
	Cost of goods sold	540,000
	Store manager's salary per year	108,000
	Operating costs per year	216,000
	Advertising and promotion per year	24,000
	Commissions (3% of sales)	36,000

1) What was the variable cost per unit sold for 2015? 
A) $30 
B) $480
C) $770 
D) $450 


2) What were total fixed costs for 2015? 
A) $924,000 
B) $576,000 
C) $348,000 
D) $224,000 


3) What are the estimated total costs if the company expects to sell 3,500 units next year? 
A) $2,028,000 
B) $3,619,000 
C) $3,271,000 
D) $1,429,000 

4) Which cost estimation method is being used by Isondo's TV and Appliance Store? 
A) the operating costing method 
B) the marginal costing method 
C) the account analysis method 
D) the cost-volume-profit analysis method 




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help