18. Parker Company has provided the following data for the most recent year: net operating

income, $30,000; fixed expense, $90,000; sales, $200,000; and CM ratio, 60%. The companyâs margin of

safety in dollars is:

(a) $150,000

(b) $30,000

(c) $50,000

(d) $80,000

 

____ 19. Refer to the data in question for Parker Company in 20 above. The margin of safety in

percentage form is:

(a) 60%

(b) 75%

(c) 40%

(d) 25%

 

____ 20. Refer to the data for Parker Company in question 20 above. What is the companyâs total

contribution margin?

(a) $110,000

(b) $120,000

(c) $170,000

(d) $200,000

 

____ 21. In a job-order costing system, the basic document for accumulating costs for a specific job is:

(a) The materials requisition form

(b) The job cost sheet

(c) The Work in Process inventory account

(d) The labor time ticket

 

____ 22. Data concerning the electrical costs at Harry Potter Corp. are as follows:

 

Machine Hours Heating Costs

Week 1 7,800 hours $2,770

Week 2 7,000 hours $2,650

Week 3 6,400 hours 2,560

Week 4 8,900 hours $2,935

 

Using the high-low method of cost analysis, what is the variable cost per machine-hour at Harry Potter?

(a) $0.60 per machine-hour

(b) $0.25 per machine-hour

(c) $0.75 per machine hour

(d) $0.15 per machine hour

 

 

____ 23. For Harry Potter Corp. â using the high-low method of cost analysis, what is the total fixed

cost?

(a) $1,600

(b) $1,950

(c) $1,750

(d) $1,850