ACC 350 FINAL EXAM

ACC 350 FINAL EXAM Five Seasons is a merchandiser of packed foods. The company provides the following information for the year 2015: Jezebel Company incurred fixed costs of $300,000. Total costs, both fixed and variable, are $450,000 when 50,000 units are produced. It sold 35,000 units during the year. Calculate the variable cost per unit. True or False: Purely Pizza Company sells pizzas in two different sizes—medium and large. The number of medium pizzas sold is twice the number of large pizzas sold. The contribution margin of a medium pizza is $10 and the contribution margin of a large pizza is $16. The weighted average contribution margin is $15. Jame Company sells glass vases at a wholesale price of $3 per unit. The variable cost of manufacture is $1.75 per unit. The fixed costs are $7,500 per month. Jame sold 5,500 units during this month. Calculate Jame’s operating income (loss) for this month. WHICH OF THE FOLLOWING FORMULAE IS THE RIGHT FORMULA FOR CALCULATING CONTRIBUTION MARGIN RATIO? True or False: The NPV method of evaluating capital investments suggests that a project with positive net cash inflows that exceed the cost of the investment should be accepted.