Mgmt_201_(Ganguly)_Midterm2_Practice_F05v1

Mgmt_201_(Ganguly)_Midterm2_Practice_F05v1 - Midterm 2...

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Midterm 2 COURSE : MGMT 201 DATE : November 16, 2005 FirstName__________________ MI_________ LastName ________________________ Student ID#:__ __ __ __ __-__ __ __ __ __ Section Number__ __ __ __ ================================================================== INSTRUCTIONS Please fill in the above information AND the information required on the scantron from your Purdue ID card (PUID) and from the section numbers listed here. Use the scantron sample given below as a checklist to make sure all required information is entered! Please remember to fill in the bubbles. Section information: Section # Section Teacher Section Meeting Time Section meeting location 0101 Santa Klaus 0201 Mdm. Klaus 0301 0401 0501 0502 0601 0701 Name, as above Sample scantron: Test Number: 01 The solutions to this practice exam will be posted approximately one week before the exam date. In the meantime, you would do well to answer this exam yourself as a final preparation for the exam. Time yourself for approximately one hour. Page 1
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INSTRUCTIONS (Please Read!) (1) Please fill in the required information (A) on the cover of this exam and (B) on the scantron, as indicated on the cover page! (2) In Section II, if you run out of time and cannot complete an item, leave a clear computation without actually computing the answer. You will get full credit. For example, if the answer is found as follows: $[(1000/2 + 300) * 1.50] = $1,200, then writing $[(1000/2 + 300) * 1.50] without computing the final answer will get you full credit. This policy will hold for any other quiz OR EXAM in this course but NOT for Section I (multiple choice questions) . (3) Some tables will be found on the last page of the exam. Please use all the digits as given in the table. You may NOT use any other tables of your own. (4) We will answer procedural questions during the quiz or exam, but no questions related to any problem-related confusion. If you are confused or have any doubts, make the most reasonable assumption you can, and write your assumption down for us to see. If the confusion seems legitimate, we will consider it in grading. (5) Please pace yourself. Do not obsess over any particular item with which you are having a problem. Please move on and come back to troublesome items later, if you can. Section I (Multiple Choice: 15 x 1 = 15 points) (Answer on scantron. ONLY scantron answers will be graded in this section.) 1. Henderson Manufacturing Inc. manufactures electric scooters. The company currently makes all of the electronic components for the scooter itself. When 6,000 motors are manufactured each year, the motor costs per unit are as follows: Direct Materials $3 Direct Labor 4 Variable overhead 5 Fixed overhead 8 Plymouth has offered to sell Henderson 6,000 motors for $15 per unit. If Henderson accepts the offer, 60% of the fixed overhead currently allocated to the motors could be avoided. If Henderson accepts the offer to purchase 6,000 motors from Plymouth, net income will: A) decrease by $1,200 B) increase by $30,000 C) decrease by $18,000 D) increase by $10,800 E) None of the above.
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This note was uploaded on 03/18/2011 for the course MGMT 201 taught by Professor Rowe during the Spring '08 term at Purdue University-West Lafayette.

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Mgmt_201_(Ganguly)_Midterm2_Practice_F05v1 - Midterm 2...

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