Question

Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process, Tales take 7 hours, and Wales take 1 hour. 19. Which product has the highest contribution margin per machine hour? a. Bales b. Tales c. Wales d. Bales and Tales have the same 20. What is the contribution margin per machine hour for Bales? a. $5 b. $7 c. $35 d. $28 21. What is the contribution margin per machine hour for Tales? a. $4 b. $7 c. $28 d. $35 22. What is the contribution per machine hour for Wales? a. $35 b. $28 c. $17 d. $7 23. The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called: a. absorption cost analysis b. variable cost analysis c. capital investment analysis d. cost-volume-profit analysis 24. Which of the following is important when evaluating long-term investments? a. Investments must earn a reasonable rate of return b. The useful life of the asset c. Proposals should match long term goals. d. All of the above. 5

          Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices
are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50;
and $15, respectively. Each product must go through the same processing in a machine
that is limited to 2,000 hours per month. Bales take 5 hours to process, Tales take 7 hours,
and Wales take 1 hour.
19. Which product has the highest contribution margin per machine hour?
a. Bales
b. Tales
c. Wales
d. Bales and Tales have the same
20. What is the contribution margin per machine hour for Bales?
a. $5
b. $7
c. $35
d. $28
21. What is the contribution margin per machine hour for Tales?
a. $4
b. $7
c. $28
d. $35
22. What is the contribution per machine hour for Wales?
a. $35
b. $28
c. $17
d. $7
23. The process by which management plans, evaluates, and controls long-term investment
decisions involving fixed assets is called:
a. absorption cost analysis
b. variable cost analysis
c. capital investment analysis
d. cost-volume-profit analysis
24. Which of the following is important when evaluating long-term investments?
a. Investments must earn a reasonable rate of return
b. The useful life of the asset
c. Proposals should match long term goals.
d. All of the above.
5

Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices
are: 55;78; and 32, respectively. The variable costs for each product are:20; 50;
and15, respectively. Each product must go through the same processing in a machine
that is limited to 2,000 hours per month. Bales take 5 hours to process, Tales take 7 hours,
and Wales take 1 hour.
19. Which product has the highest contribution margin per machine hour?
a. Bales
b. Tales
c. Wales
d. Bales and Tales have the same
20. What is the contribution margin per machine hour for Bales?
a. 5
b.7
c. 35
d.28
21. What is the contribution margin per machine hour for Tales?
a. 4
b.7
c. 28
d.35
22. What is the contribution per machine hour for Wales?
a. 35
b.28
c. 17
d.7
23. The process by which management plans, evaluates, and controls long-term investment
decisions involving fixed assets is called:
a. absorption cost analysis
b. variable cost analysis
c. capital investment analysis
d. cost-volume-profit analysis
24. Which of the following is important when evaluating long-term investments?
a. Investments must earn a reasonable rate of return
b. The useful life of the asset
c. Proposals should match long term goals.
d. All of the above.
5

Added by Kevin G.

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