Reference no: EM131796905
COST ACCOUNTING
Q1 CVP analysis has a number of uses. Describe two of these.
Q2 Suppose a service organization has a mixed cost function. When it experiences a 5% increase in sales, income increases by more than 5%. Explain why this occurs.
Q3 ABC Compagny is selling the unit of final product for $70. The projected income statement for 2014 follows:
Sales $4,000,000
Variable costs (2,000,000)
Contribution Margin 2,000,000
Fixed costs (1,500,000)
Pretax profit $ 500,000
a. Compute the contribution margin per unit and the number of units that must be sold to break even.[1 Point]
b. Compute the contribution margin ratio and the breakeven point in total revenue (in $).[1 Point]
c. What is the margin of safety in number of units?[1 Point]
d. Assume a tax rate of 25%. How many units must be sold to earn an after-tax profit of $300,000?[1 Point]
Q4. RSE Corporation sells its product for $11 per unit. Its variable cost is $2 per unit, and total fixed costs are $600. Assuming next period's estimated sales are 240 units and that 240 units is within the relevant range, calculate the following amounts:
a. Degree of operating leverage
b. Margin of safety in units
c. Margin of safety in revenues (in $)
d. Estimated income or loss (indicate which)
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Calculate the number of units to be produced
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What is the accounting rate of return on this investment
: The equipment has a 5-year life and an estimated salvage value of $150,000. What is the accounting rate of return on this investment
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Prepare the consolidated net income for 2011
: The equipment originally cost $140,000 but had a book value of only $98,000 when transferred. On that date, the equipment had a five-year remaining life.
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What would be the total manufacturing cost for the company
: Congress Manufacturing is currently working on two jobs. The job order cost sheets for Job 101 and Job 102 showed the following information.
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Assuming next period estimated sales
: Assuming next period's estimated sales are 240 units and that 240 units is within the relevant range, calculate the following amounts:
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How can accounting information systems be utilized
: How can accounting information systems be utilized to protect the integrity of business transactions and the integrity of the business owners?
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Recession reduce economy-wide corporate profits
: Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Edison's shares to decline
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Show the difference for indirect material dor budget report
: If $28,000 of indirect materials costs are incurred at 9,200 direct labor hours, the flexible budget report should show the difference for indirect materials ?
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What would you set acceptable audit risk for the cpci audit
: What would you set acceptable audit risk (high, medium-high, medium, low-medium, or low) for the CPCI audit engagement? Explain why.
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