ADMS_Winter_2007_Final_Exam_Q_and_S

ADMS_Winter_2007_Final_Exam_Q_and_S - Last name (surname):...

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Last name (surname): ____________________ First name: ________________________ Student number: ________________________ Indicate Section o 2510M – Monday; 4 - 7pm; Shujun Ding VH C o 2510N - Wednesday; 7 - 10pm; Joe Nemi ACW 004 o 2510P - Monday; 7 - 10pm; Joe Nemi TEL 0001 o 2510Q - Internet; Nelson Waweru o 2510R - Friday; 11:30 – 2:30pm; Marcela Porporato CLH H o 2510S - Tuesday; 7 - 10pm; Shujun Ding CLH H o 2510T - Thursday; 7 - 10pm; Shujun Ding CLH E o Deferred from earlier term Sign-in Number (to be filled when you sign in only): _______________ School of Administrative Studies Atkinson Faculty of Liberal and Professional Studies York University ADMS2510 April 15, 2007, 7 to 10 pm Instructions: - This is a closed book examination and no collaboration is allowed. . - There are a total of 100 marks. - Write your name, student number, and section at the top of the page. - There are five questions. Answer each question on the examination paper, and on the back of a page if necessary. - You must write in pencil or pen. Programmable calculators are not allowed. Cell phones cannot be used as calculators. Dictionaries are not allowed. - You have three hours; you must not leave before 9:00 pm - Place photo identification on your desk at the beginning of the examination to facilitate verification. Good luck. Question 1: ________ Question 2: ________ Question 3: ________ Question 4: ________ Question 5: ________ Total: /100
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Question 1 (20 marks) Seco Corp., a wholesale supply company, uses independent sales agents to market the company's products. These agents currently receive a commission of 20% of sales, but are demanding an increase to 25% of sales. Seco had already prepared its budget for next year before learning of the sales agents' demand for an increase in commissions. That budgeted income statement appears below: Seco is considering the possibility of employing its own salespersons. Three individuals would be required, at a salary of $30,000 each, plus commissions of 5% of sales. In addition, a sales manager would be employed at a fixed annual salary of $160,000. Required: a) Compute Seco's break-even point in sales dollars based upon the company's budgeted income statement, assuming that the company employs its own salespersons [6 marks]. b) Compute the sales dollars required to attain the target profit of $1,900,000, assuming that the company continues to use independent sales agents and the company agrees to their demand for a 25% sales commission (round the answer to two decimal places) [7 marks].
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c) Compute the sales dollars that would be required to generate the same net income, whether Seco employs its own salespersons or continues to use the independent sales agents and pays them a 25% commission [7 marks]. Question 2: (20 Marks) Jackson Painting paints the interiors and exteriors of homes and commercial buildings. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its activity-based costing system.
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ADMS_Winter_2007_Final_Exam_Q_and_S - Last name (surname):...

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