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Summary practice exam with answers and explanations behind the answers
- Course
- BUS-A 100
- Institution
- Indiana University-Bloomington
exam that helps with every problem covered on the final exam
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A100 Final ExamFall 2, 2019 - Second Eight WeeksExam Version 01Fill in the information below. Write clearly:Name (print): IU User Name:Class Day & Time:Course Section #:There are 34 multiple-choice questions on this exam. Be sure your exam is complete.You have two hours to finish the exam.For each question, select the best answer from among the alternatives provided. In ordet otreceive credit for your answers, you must use pencil on the machine-readable answer sheetprovided. Answers on the exam itself will not be considered in grading the exam.Fill in (and bubble) the following sections on the left side of the Scantron:Name (Last, first, middle initial)User nameVersion (01, 02, 03, or 04)Section number (The proctor will provide this to you)You may not have notes, scrap paper, or calculators other than Sharp EL-233S (or EL-233SB)with you while taking this exam. No pencil boxes or cases are allowed. Phones and smart watches mustbe put away and kept out of sight during the exam.You may have with you during the exam only your ID, pencils and an eraser, and the A100-approvedcalculator. When you complete the exam, place your answer sheet behind your exam and turn boththe exam and the answer sheet in to the exam proctor as you leave the room.NO EXAM MATERIALS MAY LEAVE THIS ROOM.Failure to turn in all exam materials or having other materials while taking the test is a violation ofthe Honor Code.Your signature below indicates you have read and will follow the above instructions:Signature:1 1Mink Corporation produces a product which it sells for $16 a unit. When Mink sells 8,000 units of thisproduct, its costs are 40% fixed and 60% variable. At this level of production, Mink is breaking even.How many units does Mink need to sell to earn net income of $10,000?a9,563b6,375c9,200d9,334e9,0002Regent Company wants to earn at least $2 per unit for each unit it sells. Regent's variable cost perunit is $5, and its total fixed cost is $2,000. How many units does Regent need to sell if the sales priceper unit is $8?a1,000b1,667c1,800d2,000eNone of the above3Riverside Inc. is losing money on its only product, which it sells for $20 apiece. The total fixed cost is$6,000, and the variable cost per unit is $14. How many units does Riverside need to sell to break even?a1,200 b1,000 c2,400 d2,000 eNone of the above4Broad Company sells its product for $60 per unit. When Broad earns $24,000 net income per year onthis product, it is selling 5,600 units. Broad's total fixed costs are $188,800. What is Broad's variable cost per unit?a$22.00b$33.71c$38.00d$41.00eNone of the above5Dublin Co.'s sales price per unit is $25. When it sells 4,000 units, its variable cost per unit is $4, andits fixed costs per unit is $14. How much will Dublin's cost per unit be if it can increase its sales to6,000 units?a$15.00 b$18.00 c$13.33 d$12.00 eNone of the above6Midland has a contract to sell 80 units at a sales price of $150 per unit. At this level of production,Midland's fixed costs are $45 per unit, and the variable costs are $30 per unit. Midland's customerhas now cancelled 15 units and only wants to buy 65. How much net income (loss) will Midland earnon this contract?a$5,200 b$4,600 c$4,875 d$4,200 eNone of the above7Tremont Co. sells a product for $32 per unit. When it sells 12,000 units, its fixed cost per unit is $18, and its variable cost per unit is $8. What is Tremont's profit per unit if it sells 10,000 units next year?a$6.00b$2.40c$3.33d$4.50eNone of the above8Which of the following costs would be classified as a period cost?aInsurance on the factorybSalary of the factory foremencDirect materialsdSalesmen's commissions2 eManufacturing overhead9Oakland manufactures men's shirts. At what point does the button on the shirt become an expense toOakland?aWhen Oakland attaches the button to the shirtbWhen Oakland sells the shirtcWhen Oakland buys the buttonsdWhen Oakland pays its supplier for the buttonseWhen the order is placed for the buttons.10On its income statement Westbelt Company reported net income of $15,000. Included in the calculationof net income was a total of $2,000 for business meals with clients, $3,000 in penalties, $4,000 forfederal income taxes, and an exclusion of $1,000. How much is Westbelt's taxable income?a$8,000 b$6,000 c$22,000 d$24,000 eNone of the above11Which of the following types of businesses is subject to what is known as "double taxation"?aOnly regular corporations and S corporationsbOnly proprietorships, partnerships and LLC'scOnly S corporations and LLC'sdOnly regular corporations, S corporations, and LLC'seOnly regular corporations12Which of the following is true regarding the tax law?aCredits are subtracted to arrive at taxable income.bFederal income taxes are required to be deducted on the tax return.cIncome from a municipal bond is taxable as a type of revenue.dAll entertainment expenses are now fully deductible.eNone of the above are true.13Executives, Inc. had the following information on its most recent income statement:Sales$82,000 Cost of good sold($38,000)Gross profit$44,000 Wages($21,000)Rent($4,000)Penalties($1,000)Business meals with clients($2,000)Taxes?Net income?How much was Executives' net income given that the company has a 21% tax rate?a$12,430 b$13,640 c$12,640 d$12,220 eNone of the above3The benefits of buying summaries with Stuvia:
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