acct 2302 final exam review jeopardy #2

Question 1

If I typically produce 1,000 units with a fixed expense of $2.00 per unit but sell 1,200 units this month, what will be the per unit FE?

Answer 1

$1.67/unit

1000 * 2.00 = $2,000 FE each month

$2,000/1,200 = $1.67 / unit

Question 2

If volume increases, what impact will this have on my variable and fixed cost per unit?

Answer 2

V. Cost per Unit = Same
F. Cost per Unit = Decrease

Question 3

If I produced 100 units and sold 75 units in the period, will absorption or variable income be higher?

Answer 3

Absorption Income