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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## This test prep was uploaded on 04/22/2008 for the course ACCT 2302 taught by Professor All during the Spring '08 term at Texas Tech.

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

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