SAMPLE FINAL - SAMPLE FINAL Student: _ 1. What is the net...

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SAMPLE FINAL Student: ___________________________________________________________________________ 1. What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? A. $31,300 B. $5,300 C. $23,500 D. $(2,500) The West Division of Fitzmaurice Corporation had average operating assets of $450,000 and net operating income of $87,300 in November. The minimum required rate of return for performance evaluation purposes is 18%. 2. What was the West Division's minimum required return in November? A. $87,300 B. $15,714 C. $96,714 D. $81,000 3. Bonniwell Corporation has two divisions: the Delta Division and the Alpha Division. The Delta Division has sales of $620,000, variable expenses of $359,600, and traceable fixed expenses of $229,200. The Alpha Division has sales of $820,000, variable expenses of $541,200, and traceable fixed expenses of $172,900. The total amount of common fixed expenses not traceable to the individual divisions is $122,000. What is the company's net operating income? A. $539,200 B. $15,100 C. $137,100 D. $417,200 Kulp Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $900,000, variable expenses of $441,000, and traceable fixed expenses of $171,000. During the same month, the West business segment had sales revenues of $450,000, variable expenses of $234,000, and traceable fixed expenses of $45,000. The common fixed expenses totaled $321,000 and were allocated as follows: $180,000 to the East business segment and $141,000 to the West business segment.
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4. The contribution margin of the West business segment is: A. $108,000 B. $675,000 C. $288,000 D. $216,000 5. Hobbins Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below: Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. A. UT,RC,DQ B. DQ,RC,UT C. RC,DQ,UT D. UT,DQ,RC 6. Supreme Celery Corporation manufactures four celery based products. Floods and fire on the west coast are going to cause a shortage of celery for Supreme next month. Information related to the four celery products that it produces are shown below. The numbers relate to the cost per case and the amount of celery per case of product: To maximize profit next month, in what order would it be best for Supreme to schedule production (first to last)? A. Jelly, Cracker Spread, Soup, Snack Bars B. Jelly, Snack Bars, Cracker Spread, Soup C. Cracker Spread, Snack Bars, Jelly, Soup D. Snack Bars, Jelly, Soup, Cracker Spread
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7. Gladstone Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is $2.83 per unit of output. The company's flexible budget performance report for last month showed a $9,555 unfavorable spending variance for supplies. During that month, 19,500 units were produced. Budgeted activity for the month
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SAMPLE FINAL - SAMPLE FINAL Student: _ 1. What is the net...

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