ACC 241 UPDATED ACTUAL EXAM 2026 QUESTIONS
AND ANSWERS SURE A+
✔✔Operating income is $240,000 , FC are $54,000 and 52,000 units are sold. What is
the CM per unit ? - ✔✔54,000 + 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 - ✔✔low = jan
high = march
y = v x + f solve for F.
change in $ / change in units
15,360 - 14,,400 - 10,000 = .4 ( v)
15,360 = (.4) ( 13,400) + F
F = 10,000
✔✔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? - ✔✔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:
sales....... $ 3,750,000
Variable expenses.... 1, 350,000
CM......
Fixed Expenses
Net OI....
, compute the degree of Operating leverage at the current level of sales - ✔✔OL = CM /
OI
240,000/ 600,000= 4
✔✔Assume that operating results for last year were:
sales....... $ 3,750,000
Variable expenses.... 1, 350,000
CM......
Fixed Expenses
Net OI....
compute the degree of Operating leverage at the current level of sales
there is an expected sales increase of 7% next year. By what percentage should net
operating income - ✔✔.07 X 4 = change OI
= 28%
✔✔Barton Co has sales of 2,000 units at $70 per unit.Variable costs are 40% of the
sales price. If total fixed costs are $44,000 the degree of operating leverage is: -
✔✔OL= CM/ OI
2,000 (70) = 140,000
140,000 ( .40) = 5600
140,000- 5600 = 40,000 OI
OL = 84,000/ 40,000 = 2.1
✔✔SP - VC =
CM - FC =
- FOLLOW THE TABLE! - ✔✔SP - VC = CM
CM - FC = OI
Sales - Variable= CM
CM - Fixed expenses = OI
✔✔compant had sales of $80,000 for the month and incurred variable expenses totaling
$5,600,000 and fixed expenses totaling $1,440,000. The CO has no beg or ending
inventories. A total of 80,000 units were produced and sold last month.
What is degree of operating leverage?
AND ANSWERS SURE A+
✔✔Operating income is $240,000 , FC are $54,000 and 52,000 units are sold. What is
the CM per unit ? - ✔✔54,000 + 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 - ✔✔low = jan
high = march
y = v x + f solve for F.
change in $ / change in units
15,360 - 14,,400 - 10,000 = .4 ( v)
15,360 = (.4) ( 13,400) + F
F = 10,000
✔✔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? - ✔✔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:
sales....... $ 3,750,000
Variable expenses.... 1, 350,000
CM......
Fixed Expenses
Net OI....
, compute the degree of Operating leverage at the current level of sales - ✔✔OL = CM /
OI
240,000/ 600,000= 4
✔✔Assume that operating results for last year were:
sales....... $ 3,750,000
Variable expenses.... 1, 350,000
CM......
Fixed Expenses
Net OI....
compute the degree of Operating leverage at the current level of sales
there is an expected sales increase of 7% next year. By what percentage should net
operating income - ✔✔.07 X 4 = change OI
= 28%
✔✔Barton Co has sales of 2,000 units at $70 per unit.Variable costs are 40% of the
sales price. If total fixed costs are $44,000 the degree of operating leverage is: -
✔✔OL= CM/ OI
2,000 (70) = 140,000
140,000 ( .40) = 5600
140,000- 5600 = 40,000 OI
OL = 84,000/ 40,000 = 2.1
✔✔SP - VC =
CM - FC =
- FOLLOW THE TABLE! - ✔✔SP - VC = CM
CM - FC = OI
Sales - Variable= CM
CM - Fixed expenses = OI
✔✔compant had sales of $80,000 for the month and incurred variable expenses totaling
$5,600,000 and fixed expenses totaling $1,440,000. The CO has no beg or ending
inventories. A total of 80,000 units were produced and sold last month.
What is degree of operating leverage?
