ACC 241 EXAM 2 QUESTIONS &
ANSWERS 100% CORRECT!!
variable cost ( slope) - ANSWERSchange in cost/ change in volume
Total fixed costs - ANSWERStotal operating cost - total varible cost
Variable Sales Rate - ANSWERSVariable Expesnes/ Sales
( x + x ) / x= Break Even Income - ANSWERS( Fixed expenses + Operating Income) /
Contribution Margin Ratio
Contribution Margin Ratio : - ANSWERSCM / Sales Rev
Break Even Sales Per Unit : - ANSWERSfixed expenses + operating expenses /
contribution margin per unit
CM per unit : - ANSWERSsales price per unit - variable costs per unit
CM percentage - ANSWERSCM per unit / sales price per unit
Total Sales per unit formula - ANSWERS(FC + OI ) / CM per unit
hint : FC and OI will be in $
Total Sales per dollar formula - ANSWERSFC + OI / CMR
CMR = - ANSWERSCM unit / Sales unit
CM = - ANSWERSSP - VC
Total costs = - ANSWERSTotal variable costs + Total fixed costs
Operating Leverage formula - ANSWERSCM / OI
change in OI percentage = - ANSWERS% change in sales X operating leverage
Margin of Safety = - ANSWERSsales - break even
Tax concept - ANSWERScomes into effect after
$ 200 profit - TR is 10%
After tax = $180
, BT X ( 1- TR) (200 X (1-.1)
When asked to find operating leverage... you must be able to calculate the Contribution
margin. Soo create a table to solve... - ANSWERSSales
-
Varbiable Expenses
=
Cm
-
Fixed Expenses
=
Net Operating Income
Sales price is $80 per unit, VC are expected to increase from $65 to $67.50 per unit. FC
of $300,000 will not change. How many additional sales unites are required in order to
maintain an operating income of $360,000? - ANSWERSadditional units = final units -
initial units
CM = SP - VC
final 80-67.50 : 15
initial80 - 65 : 12.5
FC + OI / CMper unit / final and initial
(300,000+360,000) / 12.5 = 52800 after
(300,000+ 360,000) / 15= 44,000 before
528,00-44,000 = 8800 additional units
Operating income is $240,000 , FC are $54,000 and 52,000 units are sold. What is the
CM per unit ? - ANSWERS54,000 + 240,,000 = 5.65 cm
FC + OI / unit
What is the Fixed Cost component of the cost? Use high- low method
month units Cost of product A
jan 10,000 $14,000
feb 12,600 $15,040
march 13,400 $15,360
april 11,500 $14,360 - ANSWERSlow = jan
high = march
y = v x + f solve for F.
ANSWERS 100% CORRECT!!
variable cost ( slope) - ANSWERSchange in cost/ change in volume
Total fixed costs - ANSWERStotal operating cost - total varible cost
Variable Sales Rate - ANSWERSVariable Expesnes/ Sales
( x + x ) / x= Break Even Income - ANSWERS( Fixed expenses + Operating Income) /
Contribution Margin Ratio
Contribution Margin Ratio : - ANSWERSCM / Sales Rev
Break Even Sales Per Unit : - ANSWERSfixed expenses + operating expenses /
contribution margin per unit
CM per unit : - ANSWERSsales price per unit - variable costs per unit
CM percentage - ANSWERSCM per unit / sales price per unit
Total Sales per unit formula - ANSWERS(FC + OI ) / CM per unit
hint : FC and OI will be in $
Total Sales per dollar formula - ANSWERSFC + OI / CMR
CMR = - ANSWERSCM unit / Sales unit
CM = - ANSWERSSP - VC
Total costs = - ANSWERSTotal variable costs + Total fixed costs
Operating Leverage formula - ANSWERSCM / OI
change in OI percentage = - ANSWERS% change in sales X operating leverage
Margin of Safety = - ANSWERSsales - break even
Tax concept - ANSWERScomes into effect after
$ 200 profit - TR is 10%
After tax = $180
, BT X ( 1- TR) (200 X (1-.1)
When asked to find operating leverage... you must be able to calculate the Contribution
margin. Soo create a table to solve... - ANSWERSSales
-
Varbiable Expenses
=
Cm
-
Fixed Expenses
=
Net Operating Income
Sales price is $80 per unit, VC are expected to increase from $65 to $67.50 per unit. FC
of $300,000 will not change. How many additional sales unites are required in order to
maintain an operating income of $360,000? - ANSWERSadditional units = final units -
initial units
CM = SP - VC
final 80-67.50 : 15
initial80 - 65 : 12.5
FC + OI / CMper unit / final and initial
(300,000+360,000) / 12.5 = 52800 after
(300,000+ 360,000) / 15= 44,000 before
528,00-44,000 = 8800 additional units
Operating income is $240,000 , FC are $54,000 and 52,000 units are sold. What is the
CM per unit ? - ANSWERS54,000 + 240,,000 = 5.65 cm
FC + OI / unit
What is the Fixed Cost component of the cost? Use high- low method
month units Cost of product A
jan 10,000 $14,000
feb 12,600 $15,040
march 13,400 $15,360
april 11,500 $14,360 - ANSWERSlow = jan
high = march
y = v x + f solve for F.
