Question 10 Mueller Corp. manufactures compact discs thatsell for $5.00. Fixed costs are $28,000 and variable costs are$3.60 per unit. Mueller can buy a newer production machine thatwill increase fixed costs by $8,000 per year, but will decreasevariable costs by $0.40 per unit. What effect would the purchase ofthe new machine have on Mueller’s break-even point in units?


     

Question 11 Dell Builders manufactures each house to customerspecifications. It most likely would use:


   
Question 12  A cost that remains the same in total even whenvolume of activity varies is a:
      

Question 13A product sells for $200 per unit, and its variablecosts per unit are $130. The fixed costs are $420,000. If the firmwants to earn $35,000 pretax income, how many units must besold?


       
  Question 14Grafton budgets production of 300 units inJune and 310 units in July. Each finished unit requires 4 pounds ofraw material K, which costs $5 per pound. Each month’s endinginventory of raw materials should be 30% of the following month’sbudgeted production. The June 1 raw materials inventory has 360pounds of raw material K. Compute budgeted purchases for rawmaterial K for June.
     



15. Mach Co. operates three production departments as profitcenters. The following information is available for its most recentyear. Department 1’s contribution to overhead as a percent of salesis:

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