Practice_Exam_1_Sol

Practice_Exam_1_Sol - Practice Exam 1 Solutions 1 Answer c...

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Practice Exam 1 – Solutions 1. Answer: c 4,000 Materials 8,500 Labor 7,500 Overhead 20,000 Total Product Cost 20,000 / 5,000 total units made = $4 per unit $4 * 4,000 units sold = $16,000 COGS 2. Answer: a $20,000 Sales ( 8,000) VC - Manufacturing ( 4,000) $ 8,000 Contribution Margin $8,000 CM / $8 per unit = 1,000 units sold $20,000 Sales / 1,000 units = $20 Sales Price per Unit 3. Answer: a 1 st – Relative Sales Mix Standard: 7,000 units / 10,000 total units = 70% Heavy-Duty: 3,000 units / 10,000 total units = 30% 2 nd – Weighted Average Contribution Margin Standard: ($250 - $110) * 70% = $98 Heavy-Duty: ($120 - $50) * 30% = $21 Total WACM = $98 + $21 = $119 3 rd – Find Break Even Point BE = FC / CM BE = $214,200 / $119 BE = 1,800 units 4. Answer: a Sales – VC – FC = Profit SP = Sales Price per Unit 9,000SP - $8(9,000) - $36,000 = $90,000 9,000SP = $198,000 SP = $198,000 / 9,000 SP = $22
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5. Answer: e $250,000 * 20% = 50,000 Increase in Sales (40,000)
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Practice_Exam_1_Sol - Practice Exam 1 Solutions 1 Answer c...

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