Lucky Cow Dairy provided the following expense information for May:

60) Lucky Cow Dairy provided the following expense information for May:

Assembly-line workers' wages    $ 72,000
Caps for milk bottles     3,000
Reconfiguring the assembly line    125,000
Customer support hotline    10,000
Delivery expenses    20,000
Depreciation on factory equipment    75,000
Plastic milk bottles    52,000
Salaries of salespeople    63,000
Salaries of research scientists    70,000
Customer toll-free order line    6,000

What is the total cost of research and development?
A) $73,000
B) $70,000
C) $55,000
D) $195,000
Answer:  B
Diff: 21
LO:  2-2
EOC:  E2-33B
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

61) Lucky Cow Dairy provided the following expense information for May:

Assembly-line workers' wages    $ 72,000
Caps for milk bottles     3,000
Reconfiguring the assembly line    125,000
Customer support hotline    10,000
Delivery expenses    20,000
Depreciation on factory equipment    75,000
Plastic milk bottles    52,000
Salaries of salespeople    63,000
Salaries of research scientists    70,000
Customer toll-free order line    6,000

What is the total cost for the production category of the value chain?
A) $496,000
B) $202,000
C) $180,000
D) $330,000
Answer:  B
Explanation:  B) Calculations: $ 72,000 + 3,000 + 75,000 + 52,000 = $202,000
Diff: 2
LO:  2-2
EOC:  E2-23A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

62) Lucky Cow Dairy provided the following expense information for May:

Assembly-line workers' wages    $ 72,000
Caps for milk bottles     3,000
Reconfiguring the assembly line    125,000
Customer support hotline    10,000
Delivery expenses    20,000
Depreciation on factory equipment    75,000
Plastic milk bottles    52,000
Salaries of salespeople    63,000
Salaries of research scientists    70,000
Customer toll-free order line    6,000

What is the total cost for the design category of the value chain?
A) $267,000
B) $188,000
C) $197,000
D) $125,000
Answer:  D
Diff: 2
LO:  2-2
EOC:  E2-33B
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

63) Lucky Cow Dairy provided the following expense information for May:

Assembly-line workers' wages    $ 72,000
Caps for milk bottles     3,000
Reconfiguring the assembly line    125,000
Customer support hotline    10,000
Delivery expenses    20,000
Depreciation on factory equipment    75,000
Plastic milk bottles    52,000
Salaries of salespeople    63,000
Salaries of research scientists    70,000
Customer toll-free order line    6,000

What is the total cost for the distribution category of the value chain?
A) $217,000
B) $23,000
C) $20,000
D) $151,000
Answer:  C
Diff: 2
LO:  2-2
EOC:  E2-34B
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

64) Lucky Cow Dairy provided the following expense information for May:

Assembly-line workers' wages    $ 72,000
Caps for milk bottles     3,000
Reconfiguring the assembly line    125,000
Customer support hotline    10,000
Delivery expenses    20,000
Depreciation on factory equipment    75,000
Plastic milk bottles    52,000
Salaries of salespeople    63,000
Salaries of research scientists    70,000
Customer toll-free order line    6,000

What is the total cost for the marketing category of the value chain?
A) $69,000
B) $188,000
C) $197,000
D) $267,000
Answer:  A
Explanation:  A) Calculations: $63,000 + 6,000 = $69,000
Diff: 2
LO:  2-2
EOC:  E2-34B
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

65) Lucky Cow Dairy provided the following expense information for May:

Assembly-line workers' wages    $ 72,000
Caps for milk bottles     3,000
Reconfiguring the assembly line    125,000
Customer support hotline    10,000
Delivery expenses    20,000
Depreciation on factory equipment    75,000
Plastic milk bottles    52,000
Salaries of salespeople    63,000
Salaries of research scientists    70,000
Customer toll-free order line    6,000

What is the total cost for the customer service category of the value chain?
A) $82,000
B) $16,000
C) $73,000
D) $10,000
Answer:  D
Diff: 2
LO:  2-2
EOC:  E2-34B
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

66) Joe's Bottling Company provided the following expense information for July:

Assembly-line workers' wages     $ 56,000
Depreciation on factory equipment      $ 35,000
Caps for bottles      $ 3,000
Plastic bottles     $ 52,000
Reconfiguring the assembly line     $123,000
Salaries of salespeople     $ 63,000
Customer support hotline      $ 12,000
Salaries of research scientists      $ 65,000
Delivery expenses      $ 40,000
Customer toll-free order line      $ 8,000

What is the total cost of research and development?
A) $55,000
B) $68,000
C) $65,000
D) $188,000
Answer:  C
Diff: 21
LO:  2-2
EOC:  E2-34B
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

67) Joe's Bottling Company provided the following expense information for July:

Assembly-line workers' wages     $ 56,000
Depreciation on factory equipment      $ 35,000
Caps for bottles      $ 3,000
Plastic bottles     $ 52,000
Reconfiguring the assembly line     $123,000
Salaries of salespeople     $ 63,000
Customer support hotline      $ 12,000
Salaries of research scientists      $ 65,000
Delivery expenses      $ 40,000
Customer toll-free order line      $ 8,000

What is the total cost for the production category of the value chain?
A) $457,000
B) $307,000
C) $148,000
D) $146,000
Answer:  D
Explanation:  D) Calculations: $ 56,000 + 35,000 + 3,000 + 52,000 = $146,000
Diff: 2
LO:  2-2
EOC:  E2-23A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

68) Joe's Bottling Company provided the following expense information for July:

Assembly-line workers' wages     $ 56,000
Depreciation on factory equipment      $ 35,000
Caps for bottles      $ 3,000
Plastic bottles     $ 52,000
Reconfiguring the assembly line     $123,000
Salaries of salespeople     $ 63,000
Customer support hotline      $ 12,000
Salaries of research scientists      $ 65,000
Delivery expenses      $ 40,000
Customer toll-free order line      $ 8,000

What is the total cost for the design category of the value chain?
A) $244,000
B) $186,000
C) $179,000
D) $123,000
Answer:  D
Diff: 2
LO:  2-2
EOC:  E2-33B
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

69) Joe's Bottling Company provided the following expense information for July:

Assembly-line workers' wages     $ 56,000
Depreciation on factory equipment      $ 35,000
Caps for bottles      $ 3,000
Plastic bottles     $ 52,000
Reconfiguring the assembly line     $123,000
Salaries of salespeople     $ 63,000
Customer support hotline      $ 12,000
Salaries of research scientists      $ 65,000
Delivery expenses      $ 40,000
Customer toll-free order line      $ 8,000

What is the total cost for the distribution category of the value chain?
A) $40,000
B) $43,000
C) $219,000
D) $171,000
Answer:  A
Diff: 2
LO:  2-2
EOC:  E2-34B
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

70) Joe's Bottling Company provided the following expense information for July:

Assembly-line workers' wages     $ 56,000
Depreciation on factory equipment      $ 35,000
Caps for bottles      $ 3,000
Plastic bottles     $ 52,000
Reconfiguring the assembly line     $123,000
Salaries of salespeople     $ 63,000
Customer support hotline      $ 12,000
Salaries of research scientists      $ 65,000
Delivery expenses      $ 40,000
Customer toll-free order line      $ 8,000

What is the total cost for the marketing category of the value chain?
A) $71,000
B) $179,000
C) $186,000
D) $244,000
Answer:  A
Explanation:  A) Calculations: $63,000 + 8,000 = $71,000
Diff: 2
LO:  2-2
EOC:  E2-34B
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

71) Joe's Bottling Company provided the following expense information for July:

Assembly-line workers' wages     $ 56,000
Depreciation on factory equipment      $ 35,000
Caps for bottles      $ 3,000
Plastic bottles     $ 52,000
Reconfiguring the assembly line     $123,000
Salaries of salespeople     $ 63,000
Customer support hotline      $ 12,000
Salaries of research scientists      $ 65,000
Delivery expenses      $ 40,000
Customer toll-free order line      $ 8,000

What is the total cost for the customer service category of the value chain?
A) $68,000
B) $12,000
C) $20,000
D) $75,000
Answer:  B
Diff: 2
LO:  2-2
EOC:  E2-34B
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits