UCB+UGBA102B+MidTerm+I+Exam+Fall+2011-1

UCB+UGBA102B+MidTerm+I+Exam+Fall+2011-1 - University of...

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University of California, Berkeley Walter A. Haas School of Business UGBA102B Introduction to Managerial Accounting MidTerm I Exam Fall 2011 Student Name: ____________________ Student ID: ____________________ Please answer all four questions. Space is provided for answers on these sheets. Show computations. Question 1. (25 points) Butler Sales Company is a distributor that has an exclusive franchise to sell a particular product made by another company. Butler Sales Company’s income statements for the last two years are given below: Assume that fixed expenses for both years is constant with respect to number of units sold. Required: 1. Compute the company’s variable cost per unit. 2. Compute the company’s total fixed expenses per year. 3. Compute the company’s contribution margin for this year. This Year Last Year Units sold 200,000 160,000 Sales revenue 1,000,000 $ 800,000 $ Less cost of goods sold 700,000 $ 560,000 $ Gross margin 300,000 $ 240,000 $ Less operating expenses 210,000 $ 198,000 $ Net operating income 90,000 $ 42,000 $
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(Space for Question 1) UGBA 102B Introduction to Managerial Accounting / Geyer / Fall 2011 2
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Question 2. (25 points) Zoran Corporation manufactures and sells a single product; cell telephones. Zoran is considering upgrading its current manufacturing facilities with more modern equipment to reduce conversion costs. Relevant cost data under the current facility and the upgraded facility is provided below: Under the current system, Zoran sells the phones for $125 per phone. Required: 1. What is the breakeven point (in number of phones) under the current system? 2. At what price would the contribution margin per unit after upgrading the facilities be the same as under the current system? 3. What is the breakeven point (in number of phones) assuming the price determined in (2) above is used after the facilities are upgraded? 4.
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This note was uploaded on 03/08/2012 for the course ECON 155 taught by Professor Klein during the Spring '12 term at University of California, Berkeley.

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UCB+UGBA102B+MidTerm+I+Exam+Fall+2011-1 - University of...

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