ACC 241 EXAM 2 questions with
verified answers
variable cost ( slope) - correct answer ✔✔ change in cost/ change in volume
Total fixed costs - correct answer ✔✔ total operating cost - total varible cost
Variable Sales Rate - correct answer ✔✔ Variable Expesnes/ Sales
( x + x ) / x= Break Even Income - correct answer ✔✔ ( Fixed expenses + Operating Income) /
Contribution Margin Ratio
Contribution Margin Ratio : - correct answer ✔✔ CM / Sales Rev
Break Even Sales Per Unit : - correct answer ✔✔ fixed expenses + operating expenses /
contribution margin per unit
CM per unit : - correct answer ✔✔ sales price per unit - variable costs per unit
CM percentage - correct answer ✔✔ CM per unit / sales price per unit
Total Sales per unit formula - correct answer ✔✔ (FC + OI ) / CM per unit
hint : FC and OI will be in $
,Total Sales per dollar formula - correct answer ✔✔ FC + OI / CMR
CMR = - correct answer ✔✔ CM unit / Sales unit
CM = - correct answer ✔✔ SP - VC
Total costs = - correct answer ✔✔ Total variable costs + Total fixed costs
Operating Leverage formula - correct answer ✔✔ CM / OI
change in OI percentage = - correct answer ✔✔ % change in sales X operating leverage
Margin of Safety = - correct answer ✔✔ sales - break even
Tax concept - correct answer ✔✔ comes 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... - correct answer ✔✔ Sales
-
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? - correct answer ✔✔ additional 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 ? - correct answer ✔✔ 54,000 + 240,,000 = 5.65 cm
FC + OI / unit
verified answers
variable cost ( slope) - correct answer ✔✔ change in cost/ change in volume
Total fixed costs - correct answer ✔✔ total operating cost - total varible cost
Variable Sales Rate - correct answer ✔✔ Variable Expesnes/ Sales
( x + x ) / x= Break Even Income - correct answer ✔✔ ( Fixed expenses + Operating Income) /
Contribution Margin Ratio
Contribution Margin Ratio : - correct answer ✔✔ CM / Sales Rev
Break Even Sales Per Unit : - correct answer ✔✔ fixed expenses + operating expenses /
contribution margin per unit
CM per unit : - correct answer ✔✔ sales price per unit - variable costs per unit
CM percentage - correct answer ✔✔ CM per unit / sales price per unit
Total Sales per unit formula - correct answer ✔✔ (FC + OI ) / CM per unit
hint : FC and OI will be in $
,Total Sales per dollar formula - correct answer ✔✔ FC + OI / CMR
CMR = - correct answer ✔✔ CM unit / Sales unit
CM = - correct answer ✔✔ SP - VC
Total costs = - correct answer ✔✔ Total variable costs + Total fixed costs
Operating Leverage formula - correct answer ✔✔ CM / OI
change in OI percentage = - correct answer ✔✔ % change in sales X operating leverage
Margin of Safety = - correct answer ✔✔ sales - break even
Tax concept - correct answer ✔✔ comes 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... - correct answer ✔✔ Sales
-
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? - correct answer ✔✔ additional 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 ? - correct answer ✔✔ 54,000 + 240,,000 = 5.65 cm
FC + OI / unit
