Exam (elaborations)
ACC 241 EXAM 2|68 Questions with Verified Answers,100% CORRECT
- Course
- Institution
ACC 241 EXAM 2|68 Questions with Verified Answers
[Show more]
Content preview
ACC 241 EXAM 2|68 Questions with Verified AnswersVariable cost ( slope) - CORRECT ANSWER change in cost/ change in volume
Total fixed costs - CORRECT ANSWER total operating cost - total varible cost
Variable Sales Rate - CORRECT ANSWER Variable Expesnes/ Sales
( x + x ) / x= Break Even Income - CORRECT ANSWER ( Fixed expenses + Operating
Income) / Contribution Margin Ratio
Contribution Margin Ratio : - CORRECT ANSWER CM / Sales Rev
Break Even Sales Per Unit : - CORRECT ANSWER fixed expenses + operating
expenses / contribution margin per unit
CM per unit : - CORRECT ANSWER sales price per unit - variable costs per unit
CM percentage - CORRECT ANSWER CM per unit / sales price per unit
Total Sales per unit formula - CORRECT ANSWER (FC + OI ) / CM per unit
hint : FC and OI will be in $
Total Sales per dollar formula - CORRECT ANSWER FC + OI / CMR
CMR = - CORRECT ANSWER CM unit / Sales unit
CM = - CORRECT ANSWER SP - VC
Total costs = - CORRECT ANSWER Total variable costs + Total fixed costs
Operating Leverage formula - CORRECT ANSWER CM / OI
, change in OI percentage = - CORRECT ANSWER % change in sales X operating
leverage
Margin of Safety = - CORRECT ANSWER sales - break even
Tax concept - CORRECT ANSWER comes into effect after
$ 200 profit - TR is 10%
After tax = $180
BT X ( 1- TR) (200 X (1-.1)
When asked to find operating leverage... you must be able to calculate the
Contribution margin. Soo create a table to solve... - CORRECT ANSWER Sales
-
Varbiable Expenses
=
Cm
-
Fixed Expenses
=
Net Operating Income
Sales price is $80 per unit, VC are expected to increase from $65 to $67.50 per
unit. FC of $300,000 will not change. How many additional sales unites are
required in order to maintain an operating income of $360,000? - CORRECT
ANSWER additional units = final units - initial units
CM = SP - VC
final 80-67.50 : 15
initial80 - 65 : 12.5
FC + OI / CMper unit / final and initial
(300,000+360,000) / 12.5 = 52800 after
(300,000+ 360,000) / 15= 44,000 before
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller paulhans. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76449 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now