Ponderosa Development Corp. Employee Salaries Quiz

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Questions and Answers

Which cost type includes land, material, labor, and sales commission per house at PDC?

  • Variable cost (correct)
  • Selling price
  • Fixed cost
  • Marginal cost

What is the total cost of supplies, utilities, and leased equipment per month for Ponderosa Development Corporation (PDC)?

  • $4,000
  • $6,000 (correct)
  • $5,000
  • $7,000

If the variable cost of each house for PDC is $28,000, and the total labor costs are approximately $20,000 per house, what is the total variable cost per house?

  • $30,000
  • $48,000
  • $38,000 (correct)
  • $45,000

What is the break-even point for Ponderosa Development Corporation if the selling price of each house is $115,000, land costs $55,000, and total variable costs per house are $48,000?

<p>6 houses (D)</p> Signup and view all the answers

What is the fixed cost per house for Ponderosa Development Corporation if the land for each house costs $55,000?

<p>$55,000 (B)</p> Signup and view all the answers

If the profit for PDC is $131,333.33 and the total variable cost per house is $48,000, how many houses did PDC sell?

<p>4 houses (C)</p> Signup and view all the answers

What is the selling price of each house built by Ponderosa Development Corporation?

<p>$115,000 (B)</p> Signup and view all the answers

What is the total revenue generated when 20 houses are built and sold per month?

<p>$2,400,000 (D)</p> Signup and view all the answers

If the selling price per unit is reduced to $110,000, what is the total profit when 15 houses are built and sold per month?

<p>$70,000 (D)</p> Signup and view all the answers

What is the break-even point in terms of number of houses that need to be sold per month to cover all costs?

<p>30 houses (A)</p> Signup and view all the answers

If the fixed cost increases to $45,000 and the variable cost per unit decreases to $100,000, what is the new total profit when 18 houses are built and sold per month?

<p>$65,000 (A)</p> Signup and view all the answers

If the selling price per unit is increased to $120,000, what is the new total profit when 10 houses are built and sold per month?

<p>$50,000 (C)</p> Signup and view all the answers

What is the variable cost if 25 houses are built and sold per month and the total profit is $100,000?

<p>$1,700,000 (A)</p> Signup and view all the answers

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