ACC 241 EXAM 2 QUESTIONS AND ANSWERS 100% ACCURATE

ACC 241 EXAM 2 QUESTIONS AND
ANSWERS 100% ACCURATE
variable cost ( slope) - ANSWER - change in cost/ change in volume


Total fixed costs - ANSWER - total operating cost - total varible cost


Variable Sales Rate - ANSWER - Variable Expesnes/ Sales


( x + x ) / x= Break Even Income - ANSWER - ( Fixed expenses + Operating
Income) / Contribution Margin Ratio


Contribution Margin Ratio : - ANSWER - CM / Sales Rev


Break Even Sales Per Unit : - ANSWER - fixed expenses + operating expenses /
contribution margin per unit


CM per unit : - ANSWER - sales price per unit - variable costs per unit


CM percentage - ANSWER - CM per unit / sales price per unit


Total Sales per unit formula - ANSWER - (FC + OI ) / CM per unit


hint : FC and OI will be in $


Total Sales per dollar formula - ANSWER - FC + OI / CMR


CMR = - ANSWER - CM unit / Sales unit

, CM = - ANSWER - SP - VC


Total costs = - ANSWER - Total variable costs + Total fixed costs


Operating Leverage formula - ANSWER - CM / OI


change in OI percentage = - ANSWER - % change in sales X operating leverage


Margin of Safety = - ANSWER - sales - break even


Tax concept - ANSWER - comes into effect after
$ 200 profit - TR is 10%


After tax = $180


BT X ( 1- TR) (200 X (1-.1)


The dollar sales necessary to achievea target income of $21,000 after taxes of 30%
is $450,000. The FC are $240,000. What is the CMR? - ANSWER - AT = BT X ( 1-T%)
21,000 = BT ( 1-.3)
BTX .7 = 21,000
BT = 30,000


450,000= 240,000 + 30,000 / CMR


450,000 = 270,000 / CMR


270,000 ( 1/ 450,000) CMR = 60%


Assume that operating results for last year were: