28. One of the dangers of allocating common fixed costs to a product line is that such allocations can make the line appear less profitable than it really is. (page 8 #28)

 

     A)   True

 

     B)   False

 

Explain

 

 

 

 

 

 

 

 

 

Use the following to answer Questions 10–11.

 

 

 

Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company’s monthly fixed expenses are $28,800.  (page3 #10)

 

 

 

 

 

    10.   The variable expense per unit is

 

     A)   $31.20.

 

     B)   $24.00.

 

     C)   $36.00.

 

     D)   $28.80.  explain the choice of answer

 

 

 

 

 

          

 

What does the term time value of money mean?