The document is a study guide for a week 4 quiz in an accounting course, focusing on concepts of variable and fixed costs. It includes example questions regarding cost definitions and contribution margin calculations for a company producing flash drives. Specifics are given about sales and costs associated with Hollis Industries.

1. 100% Accurate
Week 4 Wiley Plus Quiz Study Guide
ACC/561
September 1, 2015
Question 1
A variable cost is a cost that
Question 2
An increase in the level of activity will have the following
effects on unit costs for variable and fixed costs:
Question 3
A fixed cost is a cost which

2. Question 4
Hollis Industries produces flash drives for computers, which it
sells for $20 each. Each flash drive costs $14 of variable costs
to make. During April, 1,000 drives were sold. Fixed costs for
March were $2 per unit for a total of $1,000 for the month. How
much is the contribution margin ratio?