QUESTION 21
All of the following are outsourcing (make or buy) considerations, except
o How do our unavoidable fixed costs compare to the outsourcing cost?
o How do our variable costs compare to the outsourcing cost?
o What could we do with the freed capacity?
o Are any fixed costs avoidable if we outsource?
QUESTION 22
In a formula for predicting costs of the formy - ax + b, "X"represents:
o total fixed cost
o total cost
o activity or volume
o total variable cost
QUESTION 23
Zip Co. had sales of $500,000, operating income of $50,000 and a contribution margin ratio of 60% (or .60). Total fixed expenses were:
o $300,000
o $200,000
o $250,000
o $350,000