Intro to Accounting 110.100
Question 1:
1. B
2. B
3. D
4. B
5. A
6. C
7. B
8. C
9. B
10. B
11. C
12. B
13. A
14. A
15. C
16. D
17. A
18. C
19. C
20. B
21. B
22. A
23. D
24. D
25. B
Question 2:
A)
KOHA PRODUCTS LT
Projected Income Statement
For Month Ended 30th April 2005
Total sales revenue ($5000 x 50 rings) .............................................................$250,000
Less total variable costs:
Variable costs (direct labour, direct material, variable overheads) ..$80,000
Variable selling and distribution costs ..............................................$55,000
Total variable costs ............................................................................... ($135,000)
Total contribution Margin .................................................................................$115,000
Less total fixed costs
Fixed Overhead Costs .....................................................$21,000
Fixed Selling and Administration Costs .........................$25,000
Total fixed costs ...................................................................................... ($46,000)
PROFIT ...............................................................................................................$69,000
1. Contribution margin per unit = $2,300
$115,000 (total contribution margin) / 50 (rings)
2. Break-even = 20 rings
$46,000 (total fixed costs) / $2,300 (contribution margin p/unit)
3. Desired profit ($92,000) = 60 rings
($46,000 (total fixed costs) + $92,000 (desired profit)) / $2,300 (contribution margin p/unit)
4.
KOHA PRODUCTS LT
Projected Income Statement
For Month Ended 30th April 2005
Total sales revenue ($5000 x 50 rings) .............................................................$250,000
Less total variable costs:
Variable costs (direct labour, direct material, variable overheads) ..$80,000
Variable selling and
1. B
2. B
3. D
4. B
5. A
6. C
7. B
8. C
9. B
10. B
11. C
12. B
13. A
14. A
15. C
16. D
17. A
18. C
19. C
20. B
21. B
22. A
23. D
24. D
25. B
Question 2:
A)
KOHA PRODUCTS LT
Projected Income Statement
For Month Ended 30th April 2005
Total sales revenue ($5000 x 50 rings) .............................................................$250,000
Less total variable costs:
Variable costs (direct labour, direct material, variable overheads) ..$80,000
Variable selling and distribution costs ..............................................$55,000
Total variable costs ............................................................................... ($135,000)
Total contribution Margin .................................................................................$115,000
Less total fixed costs
Fixed Overhead Costs .....................................................$21,000
Fixed Selling and Administration Costs .........................$25,000
Total fixed costs ...................................................................................... ($46,000)
PROFIT ...............................................................................................................$69,000
1. Contribution margin per unit = $2,300
$115,000 (total contribution margin) / 50 (rings)
2. Break-even = 20 rings
$46,000 (total fixed costs) / $2,300 (contribution margin p/unit)
3. Desired profit ($92,000) = 60 rings
($46,000 (total fixed costs) + $92,000 (desired profit)) / $2,300 (contribution margin p/unit)
4.
KOHA PRODUCTS LT
Projected Income Statement
For Month Ended 30th April 2005
Total sales revenue ($5000 x 50 rings) .............................................................$250,000
Less total variable costs:
Variable costs (direct labour, direct material, variable overheads) ..$80,000
Variable selling and