BA225_TEST 2

BA225_TEST 2 - BA 225 Test 2: (BA225 Test 2) Managerial...

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BA 225 Test 2: (BA225 Test 2) Managerial Accounting
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BA225 Managerial Accounting Fundamental Managerial Accounting Concepts Thomas Edmonds, Philip Olds, Bor-Yi Tsay BA 225 TEST 2 1. The Euro Company sells two kinds of luggage. The company projected the following cost information for the two products: The company's total fixed costs are expected to be $280,000. Based this information, what is the combined number of units of the two products that would be required to breakeven (round your answer to the nearest whole unit) 2. All of the following are variables that could be considered in a decision to outsource a component that is currently being produced in house. Which of the following is not likely to be relevant? 3. Brumlow Company has a contribution margin ratio of 25%. The company is considering a proposal that will increase sales by $100,000. What increase in profit can be expected assuming total fixed costs increase by $20,000? 4. Espy Company is trying to decide between the following two alternatives: Which of the following conclusions can be drawn from this example? 5. All of the following are internal failure costs except: 6. Barney Company produces and sells two models of speakers for use with desktop computers. The following monthly data are provided: Total monthly fixed costs are expected to be $15,000. What is the break-even volume in sales dollars at the expected sales mix? 7. A modern cost allocation process that employs multiple cost drivers is: 8. Hartsel Company makes steel and titanium handle bars for bicycles. It requires approximately 1 hour of labor to make one handle bar of either type. During the most recent accounting period,
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BA225_TEST 2 - BA 225 Test 2: (BA225 Test 2) Managerial...

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