Question Details

What are the estimated total costs if Genend's store



Answer the following questions using the information below: 

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

	Sales (6,000 microwave ovens)	$ 1,740,000
	Cost of goods sold	960,000
	Store manager's salary per year	100,000
	Operating costs per year	250,000
	Advertising and promotion per year	30,000
	Commissions (3% of sales)	52,200

1) Which cost estimation method is being used by Genend's Good Value Appliance Store? 
A) the account analysis method
B) the operating costing method 
C) the marginal costing method 
D) the cost-volume-profit analysis method 

2) What was the variable cost per unit sold for 2015? 
A) $8.70
B) $160 
C) $168.70
D) $232


3) What were the total fixed costs for 2015? 
A) $1,392,200 
B) $380,000 
C) $350,000 
D) $1,012,200 

4) What are the estimated total costs if Genend's store expects to sell 8,000 units next year? 
A) $812,117
B) $1,729,600 
C) $1,952,200 
D) $380,450





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