final exam-Exam-w-solution

final exam-Exam-w-solution - + CONCORDIA UNIVERSITY Course:...

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

View Full Document Right Arrow Icon
+ CONCORDIA UNIVERSITY Course: Managerial Accounting, No.: Examination: Final Date: DECEMBER 8, 2010 No. of Pages: 11 Pages including the cover page Material Allowed: This is a closed book examination; no reference to notes, etc. is allowed. However, a silent hand-held four-function calculator and one standard (not electronic) dictionary are permitted. Special Instructions: Answer all multiple choice questions in the Answer Sheet IBM Form no. 4521 Return the exam questions with your answers. The Answer Sheet IBM Form no. 4521 & answer booklet Student Name: Student ID No.: Section: Instructor: COMM 305 ALL SECTIONS & ACCO 240 Final Exam December 2010 page 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
Please read the questions carefully and budget your time carefully. Show details of all your work in the lined examination answer booklet Write all your final answers in IBM Sheet with pencil. QUESTION I-A. 7.5 POINTS Use the following information to calculate and answer the next 3 questions. (SHOW YOUR WORK) Taylor Enterprises sells its product for $40 per unit. Taylor recently received a special order from a customer for 20,000 units. Production costs per unit for regular sales are: Direct materials $ 6 Direct labour 14 Manufacturing overhead (2/3 variable) 12 1. Suppose the special order price is $600,000 for all 20,000 units, and assume that Taylor has sufficient capacity to fill the special order. Should it be accepted? a. Yes, because profits will increase by $120,000 b. No, because profits will decrease by $200,000 c. No, because profits will decrease by $40,000 d. Yes, because profits will increase by $40,000 e. None of the above Total Variable cost per unit = $ 6 + 14 + 8 = $28 X 20,000 units = $560,000 – special order price is $600,000 = profit $40,000 2. Suppose that Taylor would like to earn $50,000 on this order and assume that there is sufficient capacity to fill the special order. What price per unit should Taylor charge for the special order? a. $34.50 b. $42.50 c. $30.50 d. $26.50 e. None of the above Total Variable costs for 20,000 units = $560,000 + to earn $50,000 on this order / 20,000 = $30.50 3. Suppose that the special order price is $600,000 for all 20,000 units, but there is not sufficient capacity to fill the order; 8,000 units of regular business will be replaced by the special order if it is accepted. Should Taylor accept the special order? And why? a. No, because profits will decrease by $56,000 b. Yes, because profits will increase by $40,000 c. No, because profits will decrease by $24,000 d. No, because profits will decrease by $280,000 e. None of the above COMM 305 ALL SECTIONS & ACCO 240 Final Exam December 2010 page 2
Background image of page 2
Total Variable cost per unit = $ 6 + 14 + 8 = $28 – SELLING PRICE $40 = $12 OPPORTUNITY COST FOR 8,000 UNITS = $ 96,000 + TVC $560,000 = $656,000 – SP $600,000 = LOSS $56,000 QUESTION I-B. 5 POINTS Use the following information to calculate and answer the next 2 questions. (SHOW YOUR WORK) Loso Co. made and sold 100,000 of its only product in 2009 for $15 each. Loso’s costs per unit for 2009
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 14

final exam-Exam-w-solution - + CONCORDIA UNIVERSITY Course:...

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

View Full Document Right Arrow Icon
Ask a homework question - tutors are online