# FINALW~1 - Concordia University John Molson School of...

This preview shows pages 1–4. Sign up to view the full content.

Concordia University Comm 305/4 Winter 2003 John Molson School of Business Solution to Final Exam Question 1 Multiple Choice Answer Key (20 marks total) Q# Answer marks 1. D 2 2. B 2 3. D 2 4. B 1 5. A 2 6. D 2 7. B 2 8. D 1 9. D 2 10. B 2 11. C 1 12. D 1

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Concordia University Comm 305/4 Winter 2003 John Molson School of Business Solution to Final Exam Question 2 Suggested Solution a) Contribution margin for company = \$200,000/\$600,000 = 33.33% Sales revenues to break even = \$150,000 / .3333 = \$450,000 b) # Romanesque pillars [\$450,000 x 60%] / \$40 = 6,750 romanesque pillars # Contemporary pillars [\$450,000 x 40%] / \$20 = 9,000 contemporary pillars c) Operating leverage = CM/operating income = \$200,000/\$50,000 = 4 Therefore a 40% increase in sales would result in a 160% increase in operating income (40% x 4) d) Margin of safety = \$600,000 - \$450,000 = \$150,000
Concordia University Comm 305/4 Winter 2003 John Molson School of Business Solution to Final Exam Question 3 Suggested Solution 1. Purchases Budget April May June Cost of Sales 42,000 51,000 54,000 Desired Ending Inv. 15,300 16,200 9,000 Total needs 57,300 67,200 63,000 Less: Beginning Inv. (12,600) (15,300) (16,200) Purchases 44,700 51,900 46,800 2. Cash Budget

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 7

FINALW~1 - Concordia University John Molson School of...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online