quiz+answer

 [|(See related pages)] |||||||| =Results Reporter = ||
 * Quiz
 * Out of 15 questions, you answered 8 correctly with a final grade of 53% ||
 * || 8 correct (53%) || [[image:http://highered.mheducation.com/olcweb/styles/shared/bargraph.gif width="53.333333333333336%" height="14"]] ||  ||
 * || 7 incorrect (47%) || [[image:http://highered.mheducation.com/olcweb/styles/shared/bargraph.gif width="46.666666666666664%" height="14"]] ||  ||
 * || 0 unanswered (0%) || [[image:http://highered.mheducation.com/olcweb/styles/shared/bargraph.gif width="0%" height="14"]] ||  ||
 * || 7 incorrect (47%) || [[image:http://highered.mheducation.com/olcweb/styles/shared/bargraph.gif width="46.666666666666664%" height="14"]] ||  ||
 * || 0 unanswered (0%) || [[image:http://highered.mheducation.com/olcweb/styles/shared/bargraph.gif width="0%" height="14"]] ||  ||


 * === Your Results: === ||
 * The correct answer for each question is indicated by a [[image:http://highered.mheducation.com/olcweb/styles/shared/correct.gif width="15" height="15" caption="This is the correct answer."]]. ||

<span style="background-color: rgba(255,255,255,0);">Which of the following best describes the changes in the relationship between total fixed costs and total variable costs when total volume decreases? || <span style="background-color: rgba(255,255,255,0);">Type: Easy <span style="background-color: rgba(255,255,255,0);">Learning Objective: 1 <span style="background-color: rgba(255,255,255,0);">When total volume decreases, total fixed costs stay the same and total variable costs decrease. || <span style="background-color: rgba(255,255,255,0);">Which of the following best describes contribution margin? || <span style="background-color: rgba(255,255,255,0);">Type: Easy <span style="background-color: rgba(255,255,255,0);">Learning Objective: 1, 3 <span style="background-color: rgba(255,255,255,0);">The contribution margin formula is sales - variable costs. It represents the amount each sale contributes toward covering fixed costs and profit (net income). || <span style="background-color: rgba(255,255,255,0);">The table below provides volume and cost data for four companies. Assuming all companies charge the same sales price per unit, if sales volume increases 20%, which company will have the largest profit? > <span style="background-color: rgba(255,255,255,0);"> || <span style="background-color: rgba(255,255,255,0);">Type: Medium <span style="background-color: rgba(255,255,255,0);">Learning Objective: 2 <span style="background-color: rgba(255,255,255,0);">With a variable cost of $5 per unit ($10,000/2,000 units), Company A's total cost will increase less than any of the other companies. This is because Company A's variable costs per unit is the smallest, thus giving them the larger contribution margin per unit. || <span style="background-color: rgba(255,255,255,0);">The table below provides volume and cost data for four companies. If the sales price per unit is $100 and 2,000 units are sold which company exhibits the highest operating leverage? > <span style="background-color: rgba(255,255,255,0);"> || <span style="background-color: rgba(255,255,255,0);">Type: Hard <span style="background-color: rgba(255,255,255,0);">Learning Objective: 2, 3, 4 <span style="background-color: rgba(255,255,255,0);">Operating leverage = contribution margin/net income; $190,000/$128,000 =1.48 or 148%. Contribution margin ={2,000 * ($100 - $5) = $190,000 - fixed costs $62,000}. Variable costs per unit = $5 = $10,000/2,000 units. || <span style="background-color: rgba(255,255,255,0);">Georgetown Motors has the following information available for the month of March: > <span style="background-color: rgba(255,255,255,0);"> <span style="background-color: rgba(255,255,255,0);">Georgetown's contribution margin is: || <span style="background-color: rgba(255,255,255,0);">Type: Medium <span style="background-color: rgba(255,255,255,0);">Learning Objective: 1.3 <span style="background-color: rgba(255,255,255,0);">Contribution margin = sales $2,800,000 – total variable costs (Cost of cars $2,000,000 + sales commissions $280,000 + variable administrative expenses $80,000 = $2,360,000). $2,800,000 – $2,360,000 = $440,000. || <span style="background-color: rgba(255,255,255,0);">Georgetown Motors has the following information available for the month of March: > <span style="background-color: rgba(255,255,255,0);"> <span style="background-color: rgba(255,255,255,0);">Georgetown's magnitude of operating leverage is: || <span style="background-color: rgba(255,255,255,0);">Type: Medium <span style="background-color: rgba(255,255,255,0);">Learning Objective: 4 <span style="background-color: rgba(255,255,255,0);">The magnitude of operating leverage formula is contribution margin/net income. Contribution margin = sales $2,800,000 - total variable costs (Cost of cars $2,000,000 + sales commissions $280,000 + variable administrative expenses $80,000= $2,360,000). $2,800,000-$ 2,360,000 = $440,000. Operating leverage = $440,000 /$320,000 = 1.375. || <span style="background-color: rgba(255,255,255,0);">Georgetown Motors has the following information available for the month of March: > <span style="background-color: rgba(255,255,255,0);"> <span style="background-color: rgba(255,255,255,0);">Georgetown's management is expecting sales to increase 30% next month. What percentage will net income increase? || <span style="background-color: rgba(255,255,255,0);">Type: Medium <span style="background-color: rgba(255,255,255,0);">Learning Objective: 4 <span style="background-color: rgba(255,255,255,0);">Operating leverage = contribution margin $440,000/net income $320,000 = 1.375. Operating leverage * percentage increase in sales = percentage increase in net income. 1.375 * 30 % increase in sales = 0.4125 or 41.25% || <span style="background-color: rgba(255,255,255,0);">Georgetown Motors has the following information available for the month of March: > <span style="background-color: rgba(255,255,255,0);"> <span style="background-color: rgba(255,255,255,0);">Georgetown's management estimates that they could increase sales 50% if they increased their fixed advertising expenses to $100,000. This action most likely would: || <span style="background-color: rgba(255,255,255,0);">Type: Medium <span style="background-color: rgba(255,255,255,0);">Learning Objective: 4 <span style="background-color: rgba(255,255,255,0);">This action would most likely increase their magnitude of operating leverage due to the increase in fixed costs. || <span style="background-color: rgba(255,255,255,0);">Body Boards Inc.(BBI) normally produces and sells between 500 and 600 surfboards a year. BBI is considering purchasing equipment that costs $70,000. The new equipment will double its capacity to 1,000 boards a year. || <span style="background-color: rgba(255,255,255,0);">Type: Medium <span style="background-color: rgba(255,255,255,0);">Learning Objective: 5 <span style="background-color: rgba(255,255,255,0);">Body Boards Inc. will have a larger relevant range due to the increase in capacity. It is hard to know for certain whether this will decrease or increase net income since sales should increase and depreciation will increase. They should review all costs for their behavior after the purchase of equipment. || <span style="background-color: rgba(255,255,255,0);">Body Boards Inc.(BBI) produces and sells 500 surfboards a year. It has a variable cost per unit of $175. Its total fixed costs are $25,000 per year. What is the total cost of producing 500 boards? || <span style="background-color: rgba(255,255,255,0);">Type: Easy <span style="background-color: rgba(255,255,255,0);">Learning Objective: 1 <span style="background-color: rgba(255,255,255,0);">(Variable cost per unit $175 * number of units 500) + fixed costs $25,000 = $112,500. || <span style="background-color: rgba(255,255,255,0);">Body Boards Inc.(BBI) produces and sells 500 surfboards a year. BBI has a variable cost per unit of $175 and produces 500 surfboards per year. Its total fixed costs are $25,000 per year. What is the average cost of producing one surfboard? || <span style="background-color: rgba(255,255,255,0);">Type: Easy <span style="background-color: rgba(255,255,255,0);">Learning Objective: 1, 6 <span style="background-color: rgba(255,255,255,0);">(Variable cost per unit $175 * number of units 500) + fixed costs $25,000 = $112,500/500 units = $225.00 per surfboard. || <span style="background-color: rgba(255,255,255,0);">Image > <span style="background-color: rgba(255,255,255,0);"> <span style="background-color: rgba(255,255,255,0);">The graph depicted above: || <span style="background-color: rgba(255,255,255,0);">Type: Easy <span style="background-color: rgba(255,255,255,0);">Learning Objective: 1 <span style="background-color: rgba(255,255,255,0);">The graph indicates a variable cost pattern. The zero-zero intercept indicates that when nothing is produced, there are no costs, and costs increase proportionately in total as volume increases. || <span style="background-color: rgba(255,255,255,0);">Regression Analysis: || <span style="background-color: rgba(255,255,255,0);">Type: Medium <span style="background-color: rgba(255,255,255,0);">Learning Objective: 7 <span style="background-color: rgba(255,255,255,0);">Regression analysis is usually, but not always, the most accurate method of estimating costs. Regression produces an estimated total fixed cost figure, and a variable cost per unit figure. || <span style="background-color: rgba(255,255,255,0);">Bob's Bistro operates a small chain of upscale restaurants. Bob employs managers who are paid $70,000 per year. || <span style="background-color: rgba(255,255,255,0);">Type: Easy <span style="background-color: rgba(255,255,255,0);">Learning Objective: 1 <span style="background-color: rgba(255,255,255,0);">Relative to the number of customers, the manager's salary will be the same. If 200 customers are served, or 2,000 are served, the manager salary remains at $70,000. Therefore, it is a fixed cost. || <span style="background-color: rgba(255,255,255,0);">Bob's Bistro operates a small chain of upscale restaurants. Bob pays average paper costs (napkins, cups, etc.) of $.50 per customer. || <span style="background-color: rgba(255,255,255,0);">Type: Easy <span style="background-color: rgba(255,255,255,0);">Learning Objective: 1 <span style="background-color: rgba(255,255,255,0);">Relative to the number of customers, the cost will increase in total as the number of customers increase. This is the behavior of a variable cost. ||
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">1 CORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Total fixed costs stay the same and total variable costs stay the same. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Total fixed costs decreases and total variable costs stay the same. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Total fixed costs stay the same and total variable costs decrease. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Total fixed costs decrease and total variable costs decrease. ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">2 CORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Difference between fixed costs and variable costs. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Difference between revenue and fixed costs. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Amount available to cover fixed costs and profit. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Amount available to cover variable costs. ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">3 INCORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">A ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">B ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">C ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">D ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">4 INCORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">A ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">B ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">C ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">D ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">5 CORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">$280,000. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">$440,000. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">$800,000. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">$960,000. ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">6 INCORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">1.18. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">1.2. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">1.375. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">140 %. ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">7 INCORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">30% ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">41.25% ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">137.5% ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">140 % ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">8 INCORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">have no effect on the magnitude of operating leverage. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">decrease their magnitude of operating leverage. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">increase their magnitude of operating leverage. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">decrease their profit (net income). ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">9 CORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">This action would have no effect on BBI's relevant range. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">BBI's relevant range will be lower than before the equipment purchase. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">BBI's relevant range will be higher after the equipment purchase. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">This action would definitely decrease their profit (net income). ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">10 CORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">$24,825 ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">$25,175 ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">$87,500 ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">$112,500 ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">11 CORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">$225.00 ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">$248.25 ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">$251.75 ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">$875.00 ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">12 CORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Indicates a mixed cost behavior pattern. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Indicates a fixed cost behavior pattern. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Indicates a variable cost behavior pattern. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Indicates a cost-volume-profit behavior pattern. ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">13 INCORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Is a tool used to predict volume analysis. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Produces an estimate of fixed costs. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Should not be used with current data. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Requires extensive record-keeping. ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">14 INCORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Relative to the number of restaurants, this is a fixed cost. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Relative to the number of managers, this is a fixed cost. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Relative to the number of customers, this is a fixed cost. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Relative to the number of customers, this is a variable cost. ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * <span style="background-color: rgba(255,255,255,0);">15 CORRECT || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **A)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Relative to the number of restaurants, this is a fixed cost. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **B)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Relative to the number of customers, this is a fixed cost. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] ||> **C)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Relative to the number of wait staff, this is a fixed cost. ||
 * || <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/v2_glencoe/images/correct.gif]] ||> **D)**[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || <span style="background-color: rgba(255,255,255,0);">Relative to the number of customers, this is a variable cost. ||
 * <span style="background-color: rgba(255,255,255,0);">Feedback:
 * <span style="background-color: rgba(255,255,255,0);">Feedback:

<span style="background-color: rgba(255,255,255,0);">
 * === <span style="background-color: rgba(255,255,255,0);">E-mail Your Results ===|| <span style="background-color: rgba(255,255,255,0);">[[image:http://highered.mheducation.com/olcweb/styles/shared/spacer.gif width="25" height="1"]] ||||||   ||
 * ^  || <span style="background-color: rgba(255,255,255,0);">Date: |||| <span style="background-color: rgba(255,255,255,0);">Sat Oct 18 2014 19:30:34 GMT+1100 (EST) ||
 * ^  || <span style="background-color: rgba(255,255,255,0);">My name: |||| <span style="background-color: rgba(255,255,255,0);"> ||
 * ^  || <span style="background-color: rgba(255,255,255,0);">Section ID: |||| <span style="background-color: rgba(255,255,255,0);"> ||
 * ^  |||||| **<span style="background-color: rgba(255,255,255,0);">E-mail these results to: ** ||
 * ^  ||   || <span style="background-color: rgba(255,255,255,0);">E-mail address: || <span style="background-color: rgba(255,255,255,0);">Format: ||
 * ^  || <span style="background-color: rgba(255,255,255,0);">Me: || <span style="background-color: rgba(255,255,255,0);"> || <span style="font-family: verdana,arial,sans-serif; font-size: 10px;">HTMLText ||
 * ^  || <span style="background-color: rgba(255,255,255,0);">My Instructor: || <span style="background-color: rgba(255,255,255,0);"> || <span style="font-family: verdana,arial,sans-serif; font-size: 10px;">HTMLText ||
 * ^  || <span style="background-color: rgba(255,255,255,0);">My TA: || <span style="background-color: rgba(255,255,255,0);"> || <span style="font-family: verdana,arial,sans-serif; font-size: 10px;">HTMLText ||
 * ^  || <span style="background-color: rgba(255,255,255,0);">Other: || <span style="background-color: rgba(255,255,255,0);"> || <span style="font-family: verdana,arial,sans-serif; font-size: 10px;">HTMLText ||
 * <span style="background-color: rgba(255,255,255,0);"> || || ||