ACCT 526 MIDTERM FINAL PAPER 2026 QUESTIONS WITH ANSWERS GRADED A+

ACCT 526 MIDTERM FINAL PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+

◉ 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 Answer: 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 Answer: TRUE


◉ CHAPTER 7- HW Answer:


◉ 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. Answer: 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. Answer: 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. Answer:
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 coming year. Unit variable cost is $44 (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).
Operating income at 5,000 units sold is $70,500. The degree of
operating leverage is 1.7. Now Head-First expects to increase sales
by 10% next year.


1. Calculate the percent change in operating income expected.


2. Calculate the operating income expected next year using the
percent change in operating income calculated in Requirement 1.
Answer: 1. 17%


1.7 x 10%= 17%


* DOL × Percent Change in Sales= Percent Change in Operating
Income