answers for midterm

answers for midterm - Katie Answer: (a) BE = $125,000/.40 =...

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Katie Answer: (a) BE = $125,000/.40 = $312,500 Estimated sales = 25,000 units X $16.50 = $412,500 Margin of safety = ($412,500 – 312,500)/412,500 = 24.2% (b) CM = $412,500(.40) = $165,000 Operating profits = $165,000 – 125,000 = $40,000 Operating leverage = $165,000/40,000 = 4.125 AMG Answer: Weighted average CM = [(15-9)(1) + (10-7)(4) + (5 – 4.50)(8)]/(1 + 4 + 8) = $1.69231 BE = $75,000/1.69231 = 44,319 total units A = 44,319 × (1/13) = 3,410 M = 44,319 × (4/13) = 13,637 G = 44,319 × (8/13) = 27,274 RST Answer: Variable overhead costs (2008) = .80($112,500) = $90,000 Fixed overhead costs (2008) = $235,000 - $90,000 = $145,000 ___2008___ ___2009___ Direct materials $ 112,500 $ 103,500 (1) Direct labor 175,000 140,000 (2) Variable overhead costs 90,000 82,800 (3) Fixed overhead costs 145,000 155,875 (4) Total $ 522,500 $ 482,175 (1) [($112,500)/25,000)(1.15)](20,000) = $103,500 (2) ($175,000/25,000)(20,000) = $140,000 (3) [($90,000)/25,000)(1.15)](20,000) = $82,800 (4) ($145,000)(1.075) = $155,875
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This note was uploaded on 11/13/2008 for the course ACCT 305 taught by Professor Franz during the Spring '07 term at S.F. State.

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answers for midterm - Katie Answer: (a) BE = $125,000/.40 =...

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