AC505 MANAGERIAL ACCOUNTING
INSTRUCTIONS: Please fill in the blank for question 1 and select the appropriate response to questions 2 through 45.
Use the following information to determine the gross margin for Pacific States Manufacturing for the year just ended (all amounts are in thousands ($000) of dollars:
Purchases of direct materials
Work in process inventory, 1/1
Work in process inventory, 12/31
Finished goods inventory, 1/1
Finished goods inventory, 12/31
Accounts payable, 1/1
Accounts payable, 12/31
Direct materials inventory, 1/1
Direct materials inventory, 12/31
Indirect materials used
Utilities expense, factory
Depreciation on factory equipment
Gross Margin _________________
Which costs will change with a decrease in activity within the relevant range?
Total fixed costs and total variable cost.
Unit fixed costs and total variable cost.
Unit variable cost and unit fixed cost.
Unit fixed cost and total fixed cost.
An increase in the activity level within the relevant range results in:
an increase in fixed cost per unit.
a proportionate increase in total fixed costs.
an unchanged fixed cost per unit.
a decrease in fixed cost per unit.
Use the following to answer questions 4-5:
The following information has been provided by the Evans Retail Stores, Inc., for the first quarter of the year:
Variable selling expense
Fixed selling expenses
Cost of goods sold (variable)
Fixed administrative expenses
Variable administrative expenses
The gross margin of Evans Retail Stores, Inc. for the first quarter is:
The contribution margin of Evans Retail Stores, Inc. for the first quarter is:
The total contribution margin decreases if sales volume remains the same and:
fixed expenses increase.
fixed expenses decrease.
variable expense per unit increases.
variable expense per unit decreases.
A company has provided the following data:
$70 per unit
$50 per unit
If the sales volume decreases by 25%, the variable cost per unit increases by 15%, and all other factors remain the same, net income will:
decrease by $31,875.
decrease by $15,000.
increase by $20,625.
decrease by $3,125.
Wallace, Inc., prepared the following budgeted data based on a sales forecast of $6,000,000:
What would be the amount of sales dollars at the break-even point?
The following information pertains to Rica Company:
Sales (50,000 units)
Selling and admin. expenses:
How much is Rica's break-even point in number of units?
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