The Following Data Represent Selected Information from the Comparative Income

question 67

Multiple Choice

The following data represent selected information from the comparative income statement and balance sheet for Hot Rolled Corporation for the years ended December 31, 2014 and 2013: •10,000 shares of common shares have been issued and outstanding since the company was established. They had a market value of $90 per share on December 31, 2013, and they were selling for $91.50 on December 31, 2014.
Refer to the table above. The debt ratio for Hot Rolled Corporation on December 31, 2014, was:

• A) 87
• B) 1.82
• C) 0.55
• D) 0.54

Determine contribution margin per unit and its significance in pricing and profit planning.

Differentiate between fixed, variable, and mixed costs and calculate each based on given data.

Identify and classify costs as direct or indirect in different contexts, including manufacturing and departmental accounting.

Compute total variable, fixed, and mixed costs at different levels of activity.

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Definitions:

Beginning Inventory

The worth of merchandise ready for purchase at the beginning of a financial period.

Net Operating Income

The total profit of a business after operating expenses are subtracted from gross profit.

Estimated

Pertaining to figures or values that are approximations or predictions based on available data or trends.

Raw Material

The basic material from which a product is made, essential for the manufacturing process.