Week 1 assignment-ACC/543

Q1: Doughton Bearings produces ball bearings for industrial equipment. In evaluating the

previous year, the accounting manager has determined that their unit sales price is $25 p

variable cost is $18 per bearing. What is the unit contribution margin per unit? Q 2: Felton Paper produces paper for textbooks. Felton plans to produce 500,000 cases

sell at a price of $100 per case. Each case costs the company $80 to produce. What is th

margin for next quarter? Q 3: Ford Tops manufactures hats for baseball teams. For has fixed costs of $175,000 p

each hat sells for $20. If the variable cost per hat is $10, how many hats must the compa

to break even? Q 4: The Cobb Clinic treats walk in patients for various illnesses. The accounting manag

they have $5,000 in monthly fixed costs in addition to a $20 cost per patient. If the charge

many visits per month does the clinic need to breakeven? Q 5: Oxicon, Inc. manufactures several different types of candy for various retail stores.

manager has requested that you determine the sales dollars required to break even for n

on past financial data. Your research tells you that the total variable cost will be $500,000

$750,000, and fixed costs will be $75,000. What is the breakeven point in sales dollars? Q 6: Williams & Williams Co. produces plastic spray bottles and wants to earn a profit of

quarter and have variable costs of $0.50 per bottle, fixed costs of $400,000, and sell the b

each. How many bottles must they sell to meet this goal? Q 7: Scott Power produces batteries. Scott has determined its contribution margin to be

their contribution margin ratio to be 0.4. What is the effect on operating profit from the sal

battery? One additional dollar of sales? Q 8: ABC Audio sells headphones and would like to earn after tax profit of $400 every w

headphones costs $5 and is sold for $10. They also incur costs of $200 for rent and othe

their tax rate is 20%. How many headphones must they sell per week to meet this goal? Q 8: ABC Audio sells headphones and would like to earn after tax profit of $400 every w

headphones costs $5 and is sold for $10. They also incur costs of $200 for rent and othe

their tax rate is 20%. How many headphones must they sell per week to meet this goal? Q 9: Franklin Cards sells greeting cards for $2 each, and plans to sell 100,000 cards eve

accounting manager has determined they must sell 80,000 cards to break even every qua

the margin of safety (MOS), in units and in sales dollars? Q 10: May Clothing is a retail men’s clothing store. May’s cost is $20 per shirt. The sales

per shirt. They plan to sell 400,000 shirts each year, which at this level would result in a b

of $2,500,000. What is their degree of operating leverage (DOL) at this volume level? pment. In evaluating their financial data from the

unit sales price is $25 per bearing and their unit

gin per unit? produce 500,000 cases of paper next quarter to

0 to produce. What is the total contribution xed costs of $175,000 per quarter and

y hats must the company sell each quarter The accounting manager has estimated

per patient. If the charge is $30 per visit, ow or various retail stores. The accounting

red to break even for next quarter based

e cost will be $500,000, total sales will be

point in sales dollars? wants to earn a profit of $200,000 next

$400,000, and sell the bottles for $1.00 ntribution margin to be $8 per battery and

ating profit from the sale of one additional x profit of $400 every week. Each set of

$200 for rent and other fixed costs, and

eek to meet this goal? x profit of $400 every week. Each set of

$200 for rent and other fixed costs, and

eek to meet this goal? sell 100,000 cards every quarter. The

o break even every quarter. What is $20 per shirt. The sales price is $40

level would result in a before tax profit

at this volume level?

previous year, the accounting manager has determined that their unit sales price is $25 p

variable cost is $18 per bearing. What is the unit contribution margin per unit? Q 2: Felton Paper produces paper for textbooks. Felton plans to produce 500,000 cases

sell at a price of $100 per case. Each case costs the company $80 to produce. What is th

margin for next quarter? Q 3: Ford Tops manufactures hats for baseball teams. For has fixed costs of $175,000 p

each hat sells for $20. If the variable cost per hat is $10, how many hats must the compa

to break even? Q 4: The Cobb Clinic treats walk in patients for various illnesses. The accounting manag

they have $5,000 in monthly fixed costs in addition to a $20 cost per patient. If the charge

many visits per month does the clinic need to breakeven? Q 5: Oxicon, Inc. manufactures several different types of candy for various retail stores.

manager has requested that you determine the sales dollars required to break even for n

on past financial data. Your research tells you that the total variable cost will be $500,000

$750,000, and fixed costs will be $75,000. What is the breakeven point in sales dollars? Q 6: Williams & Williams Co. produces plastic spray bottles and wants to earn a profit of

quarter and have variable costs of $0.50 per bottle, fixed costs of $400,000, and sell the b

each. How many bottles must they sell to meet this goal? Q 7: Scott Power produces batteries. Scott has determined its contribution margin to be

their contribution margin ratio to be 0.4. What is the effect on operating profit from the sal

battery? One additional dollar of sales? Q 8: ABC Audio sells headphones and would like to earn after tax profit of $400 every w

headphones costs $5 and is sold for $10. They also incur costs of $200 for rent and othe

their tax rate is 20%. How many headphones must they sell per week to meet this goal? Q 8: ABC Audio sells headphones and would like to earn after tax profit of $400 every w

headphones costs $5 and is sold for $10. They also incur costs of $200 for rent and othe

their tax rate is 20%. How many headphones must they sell per week to meet this goal? Q 9: Franklin Cards sells greeting cards for $2 each, and plans to sell 100,000 cards eve

accounting manager has determined they must sell 80,000 cards to break even every qua

the margin of safety (MOS), in units and in sales dollars? Q 10: May Clothing is a retail men’s clothing store. May’s cost is $20 per shirt. The sales

per shirt. They plan to sell 400,000 shirts each year, which at this level would result in a b

of $2,500,000. What is their degree of operating leverage (DOL) at this volume level? pment. In evaluating their financial data from the

unit sales price is $25 per bearing and their unit

gin per unit? produce 500,000 cases of paper next quarter to

0 to produce. What is the total contribution xed costs of $175,000 per quarter and

y hats must the company sell each quarter The accounting manager has estimated

per patient. If the charge is $30 per visit, ow or various retail stores. The accounting

red to break even for next quarter based

e cost will be $500,000, total sales will be

point in sales dollars? wants to earn a profit of $200,000 next

$400,000, and sell the bottles for $1.00 ntribution margin to be $8 per battery and

ating profit from the sale of one additional x profit of $400 every week. Each set of

$200 for rent and other fixed costs, and

eek to meet this goal? x profit of $400 every week. Each set of

$200 for rent and other fixed costs, and

eek to meet this goal? sell 100,000 cards every quarter. The

o break even every quarter. What is $20 per shirt. The sales price is $40

level would result in a before tax profit

at this volume level?