ACCT 526 FINAL BUNDLED EXAMS 2025/2026
COMPREHENSIVE REVIEW WITH SOLVED
QUESTIONS AND EXPERT VERIFIED ANSWERS
100% PASS
✔✔If the variable cost ratio is known, it can be subtracted from 100 to
yield the
contribution margin ratio. T/F - ✔✔FALSE
✔✔If price is $10, unit variable cost is $2.50, and total fixed cost is
3,000, 240 units
must be sold to breakeven. T/F - ✔✔FALSE
✔✔If price is $10, unit variable cost is $2.50, and total fixed cost is
3,000, the unit
contribution margin is $7.50. T/F - ✔✔TRUE
✔✔The breakeven in sales dollars equation is total fixed expenses
divided by the
contribution margin ratio. T/F - ✔✔TRUE
✔✔Tacos-2-Go could reduce their variable costs by shopping at
wholesale supplies
over local groceries. T/F - ✔✔TRUE
,✔✔Total fixed costs, price, and unit variable costs all have an impact on
the breakeven
point. T/F - ✔✔TRUE
✔✔Graphically, the breakeven point is where the contribution margin
crosses the fixed
cost line. T/F - ✔✔TRUE
✔✔If the gym's monthly unlimited plan cost $100 and the daily plan
cost $12, Lacy
would need to go to the gym at least 10 times per month for the monthly
plan to be the
better deal. T/F - ✔✔FALSE
✔✔If the gym's monthly unlimited plan cost $50 and the daily plan cost
$8, Lacy should
use the daily plan if she only intends to go to the gym 6 times per month.
T/F -
✔✔TRUE
✔✔CHAPTER 7- HW - ✔✔
✔✔Head-First Company plans to sell 5,200 bicycle helmets at $73 each
in the coming
year. Unit variable cost is $47 (includes direct materials, direct labor,
variable factory
overhead, and variable selling expense). Total fixed cost equals $49,300
(includes fixed
,factory overhead and fixed selling and administrative expense).
Calculate the number of helmets Head-First must sell to earn operating
income of
$66,140. - ✔✔4440
($49,300 + $66,140) ÷ ($73 − $47) = 4,440
*Break-even units = (Total fixed cost + Target income)/ Unit
contribution margin
✔✔Head-First Company plans to sell 5,800 bicycle helmets at $67 each
in the coming
year. Product costs include:
Direct materials per helmet $29
Direct labor per helmet 11.00
Variable factory overhead per helmet 4.25
Total fixed factory overhead 20,000
Variable selling expense is a commission of $3.80 per helmet; fixed
selling and
administrative expense totals $29,900.
1. Calculate the total variable cost per unit.
2. Calculate the total fixed expense for the year. - ✔✔1. 48.05
$29+$11.00+$4.25 +$3.80 = $48.05
*Variable cost per unit = Direct materials + Direct labor + Variable
factory overhead +
Variable selling expense
, 2. 49,900
$20,000 + $29,900 = $49,900
*total fixed factory overhead + fixed selling & administrative expense
totals= total fixed
expense
✔✔Head-First Company plans to sell 4,770 bicycle helmets at $72 each
in the coming
year. Unit variable cost is $45 (includes direct materials, direct labor,
variable factory
overhead, and variable selling expense). Total fixed cost equals $49,500
(includes fixed
factory overhead and fixed selling and administrative expense). Break-
even units equal
1,833.
1.Calculate the margin of safety in terms of the number of units.
2. Calculate the margin of safety in terms of sales revenue. - ✔✔1. 2937
4770-1833= 2937
* Budgeted units- break even units= margin of safety in units
2. 211464
343440- 131976= 211464
* budgeted sales- break even sales= margin of safety in sales revenue
✔✔Head-First Company had planned to sell 5,000 bicycle helmets at
$68 each in the
COMPREHENSIVE REVIEW WITH SOLVED
QUESTIONS AND EXPERT VERIFIED ANSWERS
100% PASS
✔✔If the variable cost ratio is known, it can be subtracted from 100 to
yield the
contribution margin ratio. T/F - ✔✔FALSE
✔✔If price is $10, unit variable cost is $2.50, and total fixed cost is
3,000, 240 units
must be sold to breakeven. T/F - ✔✔FALSE
✔✔If price is $10, unit variable cost is $2.50, and total fixed cost is
3,000, the unit
contribution margin is $7.50. T/F - ✔✔TRUE
✔✔The breakeven in sales dollars equation is total fixed expenses
divided by the
contribution margin ratio. T/F - ✔✔TRUE
✔✔Tacos-2-Go could reduce their variable costs by shopping at
wholesale supplies
over local groceries. T/F - ✔✔TRUE
,✔✔Total fixed costs, price, and unit variable costs all have an impact on
the breakeven
point. T/F - ✔✔TRUE
✔✔Graphically, the breakeven point is where the contribution margin
crosses the fixed
cost line. T/F - ✔✔TRUE
✔✔If the gym's monthly unlimited plan cost $100 and the daily plan
cost $12, Lacy
would need to go to the gym at least 10 times per month for the monthly
plan to be the
better deal. T/F - ✔✔FALSE
✔✔If the gym's monthly unlimited plan cost $50 and the daily plan cost
$8, Lacy should
use the daily plan if she only intends to go to the gym 6 times per month.
T/F -
✔✔TRUE
✔✔CHAPTER 7- HW - ✔✔
✔✔Head-First Company plans to sell 5,200 bicycle helmets at $73 each
in the coming
year. Unit variable cost is $47 (includes direct materials, direct labor,
variable factory
overhead, and variable selling expense). Total fixed cost equals $49,300
(includes fixed
,factory overhead and fixed selling and administrative expense).
Calculate the number of helmets Head-First must sell to earn operating
income of
$66,140. - ✔✔4440
($49,300 + $66,140) ÷ ($73 − $47) = 4,440
*Break-even units = (Total fixed cost + Target income)/ Unit
contribution margin
✔✔Head-First Company plans to sell 5,800 bicycle helmets at $67 each
in the coming
year. Product costs include:
Direct materials per helmet $29
Direct labor per helmet 11.00
Variable factory overhead per helmet 4.25
Total fixed factory overhead 20,000
Variable selling expense is a commission of $3.80 per helmet; fixed
selling and
administrative expense totals $29,900.
1. Calculate the total variable cost per unit.
2. Calculate the total fixed expense for the year. - ✔✔1. 48.05
$29+$11.00+$4.25 +$3.80 = $48.05
*Variable cost per unit = Direct materials + Direct labor + Variable
factory overhead +
Variable selling expense
, 2. 49,900
$20,000 + $29,900 = $49,900
*total fixed factory overhead + fixed selling & administrative expense
totals= total fixed
expense
✔✔Head-First Company plans to sell 4,770 bicycle helmets at $72 each
in the coming
year. Unit variable cost is $45 (includes direct materials, direct labor,
variable factory
overhead, and variable selling expense). Total fixed cost equals $49,500
(includes fixed
factory overhead and fixed selling and administrative expense). Break-
even units equal
1,833.
1.Calculate the margin of safety in terms of the number of units.
2. Calculate the margin of safety in terms of sales revenue. - ✔✔1. 2937
4770-1833= 2937
* Budgeted units- break even units= margin of safety in units
2. 211464
343440- 131976= 211464
* budgeted sales- break even sales= margin of safety in sales revenue
✔✔Head-First Company had planned to sell 5,000 bicycle helmets at
$68 each in the
