Acct 402 week 4 midterm exam new 2016

Page 1

ACCT 402 Week 4 Midterm Exam NEW 2016

buy here

Immediate access to solutions for ENTIRE COURSES, FINAL EXAMS and HOMEWORKS “RATED A+" - Without Registration!


* Click Buy Answer and complete the checkout process, an email will be immediately sent to you with a key (password) to have access to the answers.

ACCT 402 Week 4 Midterm Exam NEW 2016 1. (TCO 1) A mixed cost function has a constant component of $20,000. If the total cost is $60,000 and the independent variable has the value 200, what is the slope coefficient? 2. (TCO 1) Companies that take advantage of quantity discounts in purchasing their materials have 3. (TCO 3) The best opportunity for cost reduction is 4. (TCO 3) Each month, Haddock Company has $275,000 total manufacturing costs (20% fixed) and $125,000 distribution and marketing costs (36% fixed). Haddock’s monthly sales are $500,000. The markup percentage on variable costs to arrive at the existing (target) selling price is 5. (TCO 3) Which of these do antitrust laws on pricing not cover? 6. (TCO 6) Homogeneity is used to 7. (TCO 6) Information about price discounting can be useful in analyzing revenues of customers if 8. (TCO 5) Natural Nutrients Bakery of Southfield produces three flavors of cat morsels that have budgeted and actual sales data for a bag of a dozen of its cat morsels as follows for December 20XX. Budgeted Data Actual Data Tuna ChikBits ChezNips Tuna ChikBits ChezNips Bags 7,200 4,800 4,000 10,800 3,600 7,200 CM per bag $2.50 $4.00 $5.00 $2.00 $3.00 $7.50 Cont. Margin $18,000 $19,200 $20,000 $21,600 $10,800 $54,000 Total Contribution Margin $57,200 $86,400 According to company forecasts, it was budgeting to earn a 25% market share in total units (bags) of specialty prepared cat treats sold in December 20XX in Southfield. Reliable industry sources indicate that the total number of bags of cat treats sold for December 20XX in Southfield was 72,000. The sales-quantity variance for December 20XX for Natural Nutrients Bakery is 9. (TCO 6) Natural Nutrients Bakery of Southfield produces three flavors of cat morsels that have budgeted and actual sales data for a bag of a dozen of its cat morsels as follows for December 20XX. Budgeted Data Actual Data Tuna ChikBits ChezNips Tuna ChikBits ChezNips Bags 7,200 4,800 4,000 10,800 3,600 7,200 CM per bag $2.50 $4.00 $5.00 $2.00 $3.00 $7.50 Cont. Margin $18,000 $19,200 $20,000 $21,600 $10,800 $54,000 Total Contribution Margin $57,200 $86,400 According to company forecasts, it was budgeting to earn a 25% market share in total units (bags) of specialty prepared cat treats sold in December 20XX in Southfield. Reliable industry sources indicate that the total number of bags of cat treats sold for December 200X in Southfield was 72,000. The market-share variance for December 20XX for Natural Nutrients Bakery is 10. (TCO 6) Fulbrite Fashions sells a line of women’s dresses. Fulbrite’s performance report for November is shown below. The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income. Actual Budget Dresses sold 5,000 6,000 Sales $235,000 $300,000


Variable costs (145,000) (180,000) Contribution margin $ 90,000 $120,000 Fixed costs (84,000) (80,000) Operating income $ 6,000 $ 40,000 The effect of the sales quantity variance on Fulbrite’s contribution margin for November is


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.