Exam II - January February March April Credit Sales $40 ,0...

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Unformatted text preview: January February March April Credit Sales $40 ,0 0 $350,0 0 $30 ,0 0 $320,0 0 Cash Sales $70,0 0 $90,0 0 $80,0 0 $70,0 0 The regular pat ern of colection of credit sales is 40% in the month of sale, 50% in the month folowing sale, and the remainder in the second month folowing the month of sale. There are no bad debts. The budgeted ac ounts receivable balance on February 28 would be: $210,0 0 $350,0 0 x .40 = $140,0 0 $350,0 0 - $140,0 0 = $210,0 0 A commit ed fixed cost: al of the answers are cor ect: can ot be easily changed; often involves a long-term contract; does not change when output changes A company plans on seling 40 units. The seling price per unit is $5. There are 40 units in begin ing inventory, and the company would like to have 75 units in ending inventory. How many units should be produced for the coming period? 435 units A cost object is something for which a company wants to know the cost. True A linear programming model must: have only one objective function. a linear programming problem can have: only one objective function. A manufacturer of premium wire strip ers has sup lied the folowing data: Units produced and sold 340,0 0 Sales revenue $2,4 8,0 0 Variable manufacturing expense 1,258,0 0 Fixed manufacturing expense 716,0 0 Variable seling and Admin expense 306,0 0 Fixed seling and Admin expense 124,0 0 Net Operating income $ 4 ,0 0 The company's degre of operating leverage is closest to: 20.09 A mixed cost: contains both a fixed and variable component A strategic plan identifies strategies for future activities and operations, generaly covering at least five years. True Arthur Company has a margin of safety percentage of 25%. The break-even point is $30 ,0 0 and the variable expenses are 45% of sales. Given this information, the net operating income is: $75,0 0 ($30 ,0 0 x .25) At a sales level of $90,0 0, Blue Company's contribution margin is $24,0 0. If the degre of operating leverage is 6 at a $90,0 0 sales level, net operating income must equal: $4,0 0 6 = $24,0 0 / x Belant Company budgeted 20 ,0 0 units for June, 210,0 0 for July and 30 ,0 0 for August. Each unit requires 0.25 direct labor hours. How many direct labor hours are budgeted for August? $75,0 0 Carlton Company sels a single product at a seling price of $40 per unit. Variable expenses are $2 per unit and fixed expenses are $82,80 . Carlton's breakeven point is: 4,60 units 2 x + 82,80 = 40x Contribution margin is defined as sales les discretionary fixed costs. False. Contribution margin is the amount remaining after: Variable expenses have be n deducted from sales revenue Cost of go ds manufactured equals: Direct materials cost + direct labor cost + overhead cost Cost of go ds manufactured equals: the product cost of go ds completed during the cur ent period....
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Exam II - January February March April Credit Sales $40 ,0...

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