name & ID# on the exam & answer sheet. Provide all your answers on the answer No
ID: 2531743 • Letter: N
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name & ID# on the exam & answer sheet. Provide all your answers on the answer Note: Please put your and return it along with the exam after completion. 18. How can a company with multiple products compute its breakeven point? B) The breakeven point can be computed by assuming that each product sold has the same C) The breakeven point can be computed by assuming there is a constant sales mix of products at D) The breakeven point can be computed by assuming that each product sold is sold at the same breakeven point cannot be computed for companies with multiple products contribution margin per unit different levels of total revenue and apply it to calculate a bundle contribution margin sales price per unit 19. Fran Company sells several products. Information of revenue and costs for the year is as follows: . Selling price per unit: . Annual fixed costs: $20 $240,000 Variable costs per unit: o Direct material o Direct manufacturing labor o Manufacturing overhead $5.2 $1.2 $1.6 What is the number of units that Fran Co. must sell each year to breakeven? A) 20,000 units B) 12,000 units C) 30,000 units D) 17,647 units 20. Super Donut owns and operates six doughnut outlets in and around Kansas City. The following is the corporate budgeted data for next year: $ 10,000,000 S 1,800,000 . Revenues Fixed costs .Variable costs Holding the revenues and fixed costs constant, if there is a 10% increase in contribution margin, what would be the revised budgeted operating income? A) $400,000 B) $200,000 C) $8,000,000 D) $20,000 21. Management accountant often works together with managers to arrive at decisions for various circumstances, which of the following represents the five-step decision-making process? A) 1) Research and development, 2) Production, 3) Marketing, 4) Distribution, and 5) Customer B) 1) Research and development, 2) Making decisions by choosing among alternatives, 3 service Production, 4) Distribution, and 5) Customer service Implementing the decision, and 5) Customer service about the future, 4) Making decisions by choosing among alternatives, and 5) Implementing the C) 1) Identifies the problem and uncertainties, 2) Research and development, 3) Production, 4) D) 1) Identifies the problem and uncertainties, 2) Obtaining information, 3) Making predictions decision, evaluating performance and learningExplanation / Answer
18. Answer is option (C) i.e.Break even point can be computed by assumimg there is a constant sales mix of products at different levels of total revenue and apply it to calculate bundle contribution margin.
19. Break Even Point = Fixed Cost / Contribution per unit
= $2,40,000 / ($20 - $5.2 -$1.2)
= 17,647 units.
(Manufatuuring Overhead are not variable cost hence not taken while calculating Contribution.)
Hence, option (D) is correct answer.
20. Revised Budgeted Operating Income :- Previous Contribution Margin {(Revenue - Variable Cost)*1.1} minus Fixed Cost
:- (10,000,000 - 8,000,000)*1.1 - 1,800,000
:- $400,000.
Hence, Option (A) is correct answer.
21. Answer is (D). 1) Identify the problem and uncertainties. 2) Obtaining Information 3) Making predictions about the future 4) Making decisions by choosing among alternatives and 5) Implementing the decision, evaluating performance and learning.
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