Week 3 Mastery_test - ' httldmsdev .ed...

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Unformatted text preview: ' httldmsdev .ed Milan-ena-Tfi‘uwuh ...._ Cost-VolumeProtit Analysis w 1 You are provided with asimole income statement for Mayforcnuck's Tricycles, Inc. Calculate the company's contribution margin ratio and enter it in the box at right. @Efirfllflrlfiflflfi Chuck's Tricycles, Inc Income Statement 31—MayL0i' Revenue 5 750,0 00 l Costs: I Production workers wages 3} 125,000 :actory Depreciation and Maintenance 5 100,000 "u'letal, rubber, etc. 33 90,000 Electricity, water for factory [Amounts change with production volume} 5 70,000 Equipment Depreciation and Maintenance 33 150,000 \Iet Income § 215,000 - Close MasteryTest total points possible: 45 - o.'.'.‘I.-I"-:1I -ui:IJI"-J elcome. George Cannona DatEEiubmit'bEd: SatJul 232011 / Question 1 / 5 points Contribution margin ratio 2 Express your answer as a decimal and round your final answerto two decimal places. Explanation of Correct Answer Revenue 3) rec-poo Less Metal, rubbers, etc. 90,000 Less jrocluction wages 125,000 Less Electricity, water for factory 70,000 Total Contribution Margin $ 465,000 Step 2 Calculate Contribution margin ratio lContn bution Margin Raven ue = w , 0 00 $750, 000 O Show my answer (9 Show the correct answer Explanation Cost-Volume—Profit Analysis eaeeeeeeo enter it in the box at right. Roger's Racing Cars, Inc Income Statement 31-Jul-07 Raven ue Costs: Production workers wages Factory Depreciation and Maintenance Metal, rubber, etc. Electricity, water for factory [flat—rate for month} EquipmentDepreciation and Maintenance Netlncome MasteryTesttotal points possible: 45 Close You are prouioleclwith asimple income statement for Roger's Racing Cars, Inc. Calculate the company's total contribution margin and $4,450,000 «‘5 467,000 $ 500,000 $1,300,000 35 450,000 $ 600,000 '.1133 000 eloonre, George Cannons Date Submitted: SatJul 232311 /'/I Question 2 5 ooints Contribution margin = 55 2.003000 Explanation of Correct Answer Contribution Margin: Revenue 5 Less Metal, rubber, etc Less Production workers wages Total Contribution Margin O Show my answer 6) Show the correct answer Revenue — Variable lCosts 4,450,000 1,300,000 467,000 2,633,000 Explanation _ _ .1 — . _ g httpfl’p’dn'tsdewyedufkoursdD:534245?&userID:66294063tdssID=1323Lro|etype=STUDatcourseCode2AC50a— Windows Internet Explorer EM _ -. I Welcome. George Cannona Date Submitted: SatJul 23 2011 E3. Ely W. Fit; Fail; 0:; l—fitly i0; 0399:5023 You are provided with a simple income statementfor Mayfor Supreme Shoes, Inc. Calculate the company's contribution margin ratio and enter it in the box at right. Round your answerto 2 decimals. Supreme Shoes. Inc Income Statement Contribution margin ratio = 31—May07 Express your answerin decimal form and round Revenue $ 3.000.000 your answer totwodecimal places. Costs: Explanation of correct Answer Production workers wages $ 500,000 Revenue it: .5,UUU,UUU Factory Depreciation and Maintenance $ 245.000 L955 Matai, I'UIJIJEI'S, Etc 295,0'30 Metal. rubber, etc. $ 295.000 Less Production wages 500,000 Electricity. water forfactory (Amounts change with L855 Electricity, water for factory 195,000 PFDdUCUUWDIUFflEi $ 135000 Total Contribution Margin 2,010,000 Equipment Depreciation and Maintenance $ 175.000 Step2 N91 Income w Calculate Contribution margin ratio = Contribution Margin Revenue $2,010,000 $3,000,000 - —=iu'o— p- O Show my answer “— _ Close li-lastery'Testtotal points possible: 45 G) Show the correct answer ExplfinaiIOH ii ll Coswolume Profitr-‘inal'i'sis MTQ302xls -r.- —- - - - -- - - - :- l'u - IZo'.'.'i‘li|in:Ti'u-i.'--|:i"" I EKPIEI'IEIIOI'I CIT COFFEE! Answer eaicuiate WHIHDUIIOH margin per unit = Sales price per unit — Variable Costs per = $29 — {$8.50 443.50 + 7.50 + 2.50] = $4 Step 2 Calculate Breaks-wen point in units You are provided with produciion activity information forSusie's Dis = F'md 6°53 Sundresses, Inc. Calculate the company's break-even point in uni - 00001011110" margin Der U0” the box at right. = £317,000 + 14,000l $4 = 7 750 units Break-even pointin units = H50 Susie's Emotes: Semi-eases Brits-ch PmahcfionAcfivfifly Direct materials 8.50 Direct labor 6.50 Fixed overhead Variable selling 2.50 Fixed genean and administrative 14,000.00 Units produced 1000 Unitsin beginning finished goods 0 Units sold 6,900 Selling price 29.00 per unit 1 1000.00 5% $ Vari able overh d 52 150 $2 $2 $2 iflfl CosWolume F'rofimnalvsis MTQri-QE .xls .iJ. Ci ' ' - Ex lanation 05!: I'u'lastentTesttotal points possmle. 45 © Show the correct answer I3 EiEiElEIEEEiEE- Step 3 Calculate BreakeVen point in sales dollars Y '6 a 'th :1 ['1' I311 'ly' f 1' f CI Cl C t =—Fixw coats on are prev-1 e an era L.| Inn 3 v1 In orma Ion or easy own as Contribution mar in [can a Calculate the company's break—even point in revenues and enter it in the b0 9 Fe tag = 1315+ E18! * '10 000 units Cfossv Clown Costumes. Inc” September Production Aofivitv [144 Direct materials ' 23.00 per = $753,130!) Dire‘j labor ' 13-00 per I Eq'eak—even polntln revenues 2 Variable overhead 14.00 per unit Fixed overhead 15.00- pE'i' unit Variable senng 6.00- per unit Fixed general and administrative ' 18.00- per unit Units produced 10000 per month Unitsin beginning finishedgoods 0 Units sold 9:430 Selling price 100.00 per unit Cost Volume Profitflnalysis MTQEQ‘I .xls 41 " O ""' Close ' ' - Ex lanatmn MastewTesttotal points pUSSIbIe. 45 G) Show the correct answer P r I. 1"" hflpsflidmsdevryflduflcoursefl): ’5" - - : . J 2;. 1. x i hnrlHII—Ilull u. “I.” nun. nun-vu- .m... . ‘7 Calculate Contribution margin per unit I = Sales price per unit — Variable Costs pe = $220 — {$75 +15 +17+13l 39: E} l3} l3; E) E} E} = $100 St 2 Catitfulate CVP in units = iFixed costs + Target Erofit! You are provided with production actin information for Funky FurFe Contribution margin per unit company has a target profit of$200,000. Calculate the numberofun needs to sellto reach this target profit and enter it in the box at right. = “2323] 1 4umunit51+ 52m [mu $100 F'de Fw- Fedoras, Jim? PmaticffonAcm'ifuy = 3,300 units Direct materials 51% I" 5.00 FALW Direct labor 5: 15.00 per unit 3 33 Variable overhead 5: 12.00 per unit Fixed overhead 5: 22.00 per unit Variable selling 5% 13.00 per unit Fixed general and administrative $ 23.00 per unit Units produced 4000 per month Unitsin beginning finished goods 0 Units sold 3,950 Selling price $ 220 per unit Target Profit $ 200,000 per month 3 I.J CostVolume ProfitAnalyais MT0501.xls Ir- 0 Show my answer ’— _ Close li-lastery'Testtotal points possible: :15 G) Show the correct answer Explfil‘latlon hflpE/fdrnsdeu ‘7 o o - ' o ‘ . Step 1 Calculate Contribution margin per unit fifiifirfifizfirfifir Sales price per unit 7 Variable Costs per un $1,500—{S60+ 190+ 17+33) $1 ,200 Step 2 Calculate Contnbutlon margin percentage You are provided With production activtty Information for Artists A = Contr'i hution Margin company has atarget profit of$500.000. Calculate the level ofs Sa|e price needs to sellto reach this target profit and enteritin the box at ri = $1 200 $1,500 Arrays Abound June Producfi'onzicfi'firu Direct materials 3 50. Pu m Im'earee—re‘oul arm—W— Direct labor S 190.00 per unit = 53? SEE: Vafiablecwerhead s 1100 per unit Fixed overhead 3 8.00 per unit Variable selling 3 33,00 per unit Fixed general and adjninistrative 8 12.00 per unit Units proddced 500 per month Units in beginningfinished goods 0 Units sold 490 Selling price 8 1.500 per unit Target Profit S 500.000 per month Cost Volume Profitmalvsis MTG—“11 )(IS '— O Show my answer Cl ' ' 7 Ex Ianallun use Mastery Test total pornts possrble. 45 (9 5pm“, the correct answer p I -o'l'll-I' lJI - I mar-unrur'L-qn eat-come1 George Cannona i 7 Cost-Volume-Profit Analysis DaheE‘ruhmit‘hed: EratJul 2.32011 Weeeee on ,Wmv You are provided with production activity information forfirrtists Abound, Inc. The company has atarget profit of$EvUU,{J{JU. Calculate the level ofsales the company needs to sell to reach this target profit and enter it in the box at right. Artists About/to: Juno Production Acfi 1i tu Direct materials 60.0C PET “flit Level ofsales reuired{in $1 to reach target profit Direct lab-or 190m: per unit = Vaiiableoverheacl 17.0c per unit Fixed overhead 8.0C per Explanation of Correct Answer Variable selling 33.0C PET Sale price Fixed general and administrative 12.00 per m Units predicted 503 per $1,500 Unitsin beginningfinished goods 3 - . I Step 3 LINE 501d 49:] Calculate CVP in sales dollars Sdlinfi Price 1:500 per = jFixed costs + Target Erofit} Target Profit 500:00C per Contribution margin per unit ail Cost‘u'olume Profitflnalysis MTom-i .xls = fl—J—Ji-H +12 $99313? + 99 999 = $637,500 r “WW” II. Close ' ' - Ex lanatlon Mastery Testtotal points possmle. 45 G) Show the correct answer P EKPIBI‘IIIIDI‘I DI CDFFBG‘I ANSWBF Calculate Contribution margin per unit F1; E» m F; W w W :Eféels—pacaesplqunitijlfaégiableCosts perunit = $40 Step 2 Calculate Breakeven point in units You are provided with production activity information forSensati Fixed costs Calculate the company's margin ofsafetv and enter it in the box Contribution margin per unit = “$13 +$1Tl*3 DUE] unitsl Sensational Sundries Inc, Februar Production Activit “n DirECt materials \% Direct labor 12.00 per unit Margin ofsafety : s, -: ':j:j Variable overhead 7.00 perunit Fixed overhead 10.00 perunit Variable selling 5.00 perunit Fixed general and administrative 17.00 per unit Units produced 0000 permonth Units in beginning finished goods 0 Units sold 7,000 Selling price $ 100.00 per unit $ $ $ $ $ $ .j CostVqume ProfitAnalvsis MTOBO‘I .xls O Show my answer ’— , lv'lEStEl'y'TESttDtEll points possible: 45 © Show the correct answer Explfil‘latlon III'II- 'uo'l'fl-I' In - I o.'.'.-Iun'.'u'-—--u--|:|;_I"-=" _ _ H _ x I EBPIHIIELIUII UI DUI IBGI Hllb'fl'fll 1. ate areal-{even point in units | .7 Cost-Volume-Profit Analysis oemaea Fixed Costs Contribution margin per unit “$18 + $1?! * 8 000 unitsl $40 = 1000 units You are provided with production activity inform Calculate the companys margin ofsafety and 9 ate Margin of Safety = [7,800 units sold in November— 7000 units at breakeven} *5100 = $80,000 Sensational Sundries Inc, February Product Direct materials Direct labor $ 12.00 per unit Margin ofsafety : .05 Variable overhead 5% 100 perunit Fixed overhead $ 10.00 perunit Variable selling $ 5.00 perunit Fixed general and administrative $ 17.00 per unit Units produced 0,000 permonth Units in beginning finished goods 0 Units sold 7,000 Selling price $ 100.00 per unit r-Ijlfl Cost Volume ProfitAnalvrsis MTQBQ‘l .xls _|J. Close ' ' - Ex lanatlon Mastei'yTesttotal points possrble. 45 .3 Show the correct answer P .-" - httpfl'fdmsd ' '-.d .I' eicome1 George Carrnona | .7 Cost-Volume—Protit Analysis Date Submitted: EratJul 232011 Wawmnnmmfl ng You are provided with production activity information for Fancy Furniture, Inc. Calculate the company's degree ofoperating leverage and enter it in the box at right. Roundto 2 decimal places. Fancy Furniture Inc, October Production Activity Direct materials 35 per unit Direct |ahgr per unit Degree ofooerating leverage Variable overhead per unit Variable selling per unit Fixed overhead per mont Fixed general and administrative per mont Variable Coming Income Statement: Units produced per monti' Units in beginning finished goods Sales {510 units )1: $500) 255,000 Units sold Less Variable costs {510 units X $2001 102,000 Selling price per unit Contribution Margin 153,000 Less Fixed Costs {051000 + $50,000) 117,000 iii CostVolume F'rofitAnalIsis MTosoi .105 Net Operating Income 36,000 Explanation of Correct Answer Variable Costs = Direct materials + Direct labor +Var r OWN“ I.- Close ' ' - Ex lanatlon Masteanesttotal points possrble. 45 G) Show the correct answer P "J J - I I+'.'."n'II.Ir:TI'=I-Id'fllli"" I = Direct materials + Direct labor + Variable Overhead + Variable Selli = $130+ $150+ $20+$20 = $200 of operating leverage Contribution margin You are provided with production activity informa Nat Openith Income Calculate the company's degree ofoperating Ie Round to 2 decimal places. 153 000 $36,000 4.25 Fancy Furniture Inc, October Production Ac Direct materials I Direct labor per unit Degree ofoperating leverage : 4.25 Variable overhead per unit Variable selling per unit Fined overhead per month Fined general and administrative per month Units produced per month Units in beginning finished goods Units sold Selling price per unit iflfl Cost‘v'olume Profimnalvsis MTQQQ‘l .xls .|J. 5| - - - Ex lanatlon 052 Masteanest total points possrble. 45 © Show the correct answer P ...
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This note was uploaded on 03/26/2012 for the course AC505 AC505 taught by Professor Dillan during the Spring '10 term at Keller Graduate School of Management.

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Week 3 Mastery_test - ' httldmsdev .ed...

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