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Unformatted text preview: ACC 331 Spreadsheet Exam Chapters 5 and 6 In order to do these problems it is important to know how to use excel regression solution in data analysis 1. The following is Arkadia Corporation's contribution format income statement for last month: Units produced and sold Sales Variable expenses Contribution margin Fixed expenses Net operating income 20,000 $1,200,000 $800,000 $400,000 $300,000 $100,000 You can review the excel regression and analysis in the AVP section and the Recommended Activities section of th The company has no beginning or ending inventories units during the month. Required: a. What is the company's sales price and variable cost per unit, and contribution margin ratio? b. What is the company's breakeven in units and sales dollars? c. If sales increase by 100 units, by how much should net operating income increase? d. How many units would the company have to sell to attain target profits of $125,000? Assume the original data. e. What is the company's margin of safety in dollars, assuming the original data selling 20,000 units? f. What is the company's degree of operating leverage using the original data? 2. The Garry Corporation's most recent contribution format income statement is shown below: Sales units Sales dollars Variable expenses Contribution margin Fixed expenses Net Operating income Total 15,000 $225,000 135,000 90,000 35,000 $55,000 Per Unit $15.00 9.00 $6.00 Required: Prepare a new contribution format income statement under each of the following conditions (consider eac a. The sales volume increases by 10% and the price decreases by $0.50 per unit. b. The selling price decreases $1.00 per unit, fixed expenses increase by $15,000, and the sales volume c. The selling price increases by 25%, variable expense increases by $0.75 per unit, and the sales volume d. The selling price increases by $1.50 per unit, variable cost increases by $1.00 per unit, fixed expenses decrease by $15,000, and sales volume decreases by 12%. 3. In July, Meers Corporation sold 3,700 units of its only product. Its total sales were $107,300, its total variable expenses were $66,600, and its total fixed expenses were $34,800. Required: a. Construct the company's contribution format income statement for July in good form. b. Redo the company's contribution format income statement assuming that the company sells 3,400 units 4. The management of Dethlefsen Corporation would like to have a better understanding of the behavior of its inspection costs. The company has provided the following data: Direct Labor Hours 5,089 5,042 5,026 5,073 5,029 5,040 5,070 5,027 4,995 Inspection Cost $33,122 $32,929 $32,870 $33,065 $32,906 $32,913 $33,050 $32,875 $32,746 JAN FEB MAR APR MAY JUN JUL AUG SEP Management believes that inspection cost is a mixed cost that depends on direct laborhours. Required: a. Using the high low method determine the variable cost per unit, the total fixed cost, and express in a for b. Using the regression analysis determine the variable cost per unit, the total fixed cost, and express in a Explain what the regression analysis printout for this problem, tells you about the independent and dep and the fixed cost or intercept. How good of a predictor is the model and how did you determine this. use excel regression solution in data analysis.
ction and the Recommended Activities section of the Module’s GO TO menu. t income statement for last month: during the month. unit, and contribution margin ratio? perating income increase? target profits of $125,000? ing the original data selling 20,000 units? g the original data? income statement is shown below: each of the following conditions (consider each case independently): ases by $0.50 per unit. es increase by $15,000, and the sales volume decreases by 5%. reases by $0.75 per unit, and the sales volume decreases by 15%. st increases by $1.00 per unit, fixed expenses duct. Its total sales were $107,300, its total nses were $34,800. ement for July in good form. nt assuming that the company sells 3,400 units. o have a better understanding of the behavior following data: hat depends on direct laborhours. er unit, the total fixed cost, and express in a formula. t per unit, the total fixed cost, and express in a formula. blem, tells you about the independent and dependent variable, is the model and how did you determine this. ...
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This note was uploaded on 04/06/2011 for the course ACC 300 taught by Professor Barga during the Spring '11 term at St. Leo.
 Spring '11
 Barga
 Accounting

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