Accounting 200 Final Exam - Clicker Questions

If a company has sales of $130,000 and COGS of $60,000. The selling $15,000 and administrative costs totaled $36,000. What is the contribution margin? Variable: Fixed: COGS: 100% ---- SELLING EXPENSE: 80% 20% ADMINISTRATIVE: 25% 75%

80% of 15,000 = 12000 25% of 36,000= 9,000 That added together gives you 21,000. Then you take 130,000-60,000=70,000 70,000-21,000=49,000 Contribution Margin is $49,000

A budget for one level of activity is considered ?

A static budget?

The selling price of a product is $1,350, the unit variable cost is $900 and total fixed costs are $810,000. What is the BEP in units?

BEP = fixed cost / unit contribution margin CM = 1,350-900=450 BEP= 810,000 / 450 = 1,800 Break even point is 1,800 units

The selling price of a product is $1,350, the unit variable cost is $900 and total fixed costs are $810,000. What is the BEP in dollars?

BEP in dollars = BEP in units x selling price BEP in dollars = 1,800 x 1,350 = 2,430,000 BEP in dollars is 2,430,000

What is the factory over head given in the information below? Direct Materials : $ 54,000 Direct Labor: $20,000 Factory rent / utilities :$16,000 Indirect Materials: $8,000 Indirect Labor: $12,000 Factory Tax: $4,000

FOH= indirect materials, indirect labor, rent / utilities and taxes 8,000 + 12,000 + 16,000 + 4,000 = 40,000

A company expects to collect 75% cash in the month of the sale and the remaining 25% in the month after the sale. What are the expected cash receipts for the month of February? Projected sales are below: January $1,200,000 February: $1,450,000 March: 1,600,000

February = (1,450,000 x .75) = 1087500 January = (1,200,000 x .25) = 300,000 1,087,500 + 300,000 = 1,387,500 The expected cash receipts for the month of February are 1,387,500

Jordan company has sales of $5,200,000, fixed cost of $550,000 , variable costs of $3,328,000. What is the contribution margin ratio?

Sales - variable cost = CM CM / Sales = CMR 5,200,000 - 3,328,000 = 1,872,000 1,872,000 / 5,200,000 = .36 .36 x 100 =36% Contribution Margin Ratio is 36%

The anticipated BEP in units will decrease if the unit selling price increases and all other costs remain constant? T/F

True

A company expects to sell $250,000 units in the coming year. Inventory at the beginning was 22,500. Desired inventory at the end is 30,000. What is the estimated amount of units to be purchased this year?

expected sales + desired ending - beginning inventory 250,000 + 30,000 - 22,500= 257,500 The estimated amount to be purchased is 257,500 units.