( TCO 4 ) Circle K Furniture has a contribution margin ratio of 16 %. If fixed costs are $ 176,800 , how many dollars of revenue must the company generate in order to reach the break-even point ? 3 . Question : ( TCO 4 ) Randy Company produces a single product that is sold for $ 85 per unit . If variable costs per unit are $ 26 and fixed costs total $ 47,500 , how many units must Randy sell in order to earn a profit of $ 100,000 ? 4 . Question : ( TCO 5 ) In full costing , when does fixed manufacturing overhead become an expense ? 5 . Question : ( TCO 5 ) Variable costing income is a function of : 6 . Question : ( TCO 5 ) Peak Manufacturing produces snow blowers . The selling price per snow blower is $ 100 . Costs involved in production are : 7 . Question : ( TCO 6 ) Which of the following is not a reason that companies allocate costs ? 8 . Question : ( TCO 6 ) Which of the following statements about cost pools is not true ? 9 . Question : ( TCO 6 ) The building maintenance department for Jones Manufacturing Company budgets annual costs of $ 4,200,000 based on the expected operating level for the coming year . The costs are allocated to two production departments . The following data relate to the potential allocation bases : Production Dept . 1 10 . Question : ( TCO 7 ) A company is currently making a necessary component in house ( the company is producing the component for its own use ). The company has received an offer to buy the component from an outside supplier . A machine is being rented to make the component . If the company were to buy the component , the machine would no longer be rented . The rent on the machine , in relation to the decision to make or buy the component , is :