ACC312_Spring06_Exam2_Solution

ACC312_Spring06_Exam2_Solution - Acc 312 - Spring 2006 -...

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Unformatted text preview: Acc 312 - Spring 2006 - Exam II Answer Key - Page 1 M/C Answer Key (3 points each) Question Form A Question Form A 1 D 12 C 2 C 13 C 3 B 14 C 4 A 15 E 5 B 16 A 6 C 17 D 7 A 18 B 8 C 19 A 9 B 20 A 10 C 21 D 11 B 22 D Problem 1 Solution (11 points) A. Determine the weighted-average unit contribution margin. (3 pts) Alpha Beta Zeta Selling price $200 $600 $800 Less: Variable cost 100 280 320 Contribution margin $100 $320 $480 Alpha: $100 x 50% $ 50 Beta: $320 x 30% 96 Zeta: $480 x 20% 96 Weighted-average CM $242 B. Determine the break-even volume in units for each product. (4 pts) Break-even volume: $2,420,000 $242 = 10,000 units Alpha: 10,000 x 50% = 5,000 units Beta: 10,000 x 30% = 3,000 units Zeta: 10,000 x 20% = 2,000 units C. Determine the total number of units that must be sold to obtain a profit for the company of $726,000. ( 2 pts) Volume to earn $726,000: ($2,420,000 + $726,000) $242 = 13,000 units D. Assume that the sales mix for Alpha, Beta, and Zeta is changed to 40%, 30%, and 30%, respectively. D....
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ACC312_Spring06_Exam2_Solution - Acc 312 - Spring 2006 -...

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