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RSM222 - Fall 2009 - Test(solutions)

RSM222 - Fall 2009 - Test(solutions) - RSM222 TermTest...

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RSM222 Term Test Fall 2009 Part A ( 2 marks each = 32 marks) 1. A 2. B 3. D 4. A 5. B 6. D 7. C 8. C 9. C 10. B 11. D 12. C 13. D 14. A 15. D 16. A Part B (5 marks) a) Purchases   = $55,000 b) Direct material = $50,000 c) Beginning work-in-process = $8,000 d) Direct labour = $21,000 e) Cost of goods manufactured  = $130,000 Part C (20   marks) A) Breakeven units   =         Fixed Costs Contribution Margin
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   =   Manufacturing Fixed Costs + Selling & Administrative  Fixed Costs    Contribution Margin     =  $30,000 + $40,000 $27      =         2593 units Contribution Margin = Selling Price – Variable Costs    Selling Price  $60 100% Variable Costs: Manufacturing Costs $214,000 Less: Fixed      30,000 $184,000 / # of units   8000 units ($23)   55% Selling variable costs  $80,000 / # of units  8,000 units ($10)  $27    45% b) Breakeven $ Fixed Costs + Profit Contribution Ratio = $70,000 + $175,000 .45 =    $ 544,444 c) New Proposal Selling Price (35% increase)  $81   (60 x 1.35)
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