MGMT 640 Spring 2013 Final Exam
The Remaining Examination is particular person work. All work on the examination ought to be from your personal efforts, withno help from classmates, household, associates or others. By continuing with this examination, you areagreeing to not share the examination content material or your responses with anybody, together with future studentsof MGMT640. Your accomplished examination is due by eight:00 PM on Thursday, April 25, 2013 (uploadto your Assignments Folder in WebTycho).Please consult with the Syllabus for the coverage relating to late submissions. There will likely be nomake-up exams aside from documented emergencies.You aren't required to submit your working. Nevertheless, full working showingformulas and calculations could also be thought of for partial credit score for incorrect solutions.Establish the letter of the selection that finest completes the assertion or solutions the query.A)B)C)D)1. A producing firm produces 80,000 models of product A at a complete price of $2.4million. Complete fastened prices are $1.four million. If the corporate will increase manufacturing by 25%and makes use of a 19% markup the value per unit will likely be:$31.54$30.80$51.80$37.10Use the next to reply questions 2-Three:RNO Firm's marketplace for the Mannequin 55 has modified considerably, and RNO has needed to dropthe value per unit from $265 to $125. There are some models within the work in course of stock thathave prices of $150 per unit related to them. RNO may promote these models of their currentstate for $100 every. It can price RNO $10 per unit to finish these models in order that they will besold for $125 every.A)B)C)D)12. A brand new worker seems to be on the evaluation and exclaims, We'll lose cash with both ofthese alternate options! Let's simply throw these models within the trash! Suppose the choice totrashing is selecting the extra worthwhile of the 2 alternate options (that the brand new employeelooked at and didn't like). What impact will the trashing choice (that the brand new employeewants) have on internet earnings?Web earnings will enhance by $35 per unit for every unit discarded.Web earnings will lower by $115 per unit for every unit discarded.It can don't have any impact on internet earnings.Web earnings will lower by $265 per unit for every unit discarded.A)B)C)D)Three. When the incremental revenues and bills are analyzed, the corporate is best off by$10 per unit in the event that they promote the models of their present state.$25 per unit in the event that they promote the models of their present state.$15 per unit in the event that they full the models.$125 per unit in the event that they full the models.A)B)C)D)four. An organization utilizing exercise primarily based pricing marks up the direct price of products by 43% pluscharges clients for oblique prices primarily based on the actions utilized by the client.Oblique prices are charged as follows: $eight.00 per order positioned; $four.00 per separate itemordered; $30.00 per return. A buyer locations 10 orders with a complete direct price of$Three,000, orders 300 separate gadgets, and makes 6 returns. What's going to the client becharged?$5,330$Three,000$5,750$four,290A)B)C)D)5. Manufacturing overhead is allotted to merchandise primarily based on the variety of machine hoursrequired. In a yr when 20,000 machine hours had been anticipated, prices had been budgetedat $125,000. If a product requires 7,000 machine hours, how a lot manufacturingoverhead will likely be allotted to this product?$41,667$43,750$1,120$50,000Use the next to reply questions 6-7:The Dawn Lodge has 200 rooms. Every room rents at $110 per night time and variable prices complete $16per room per night time of occupancy. Mounted prices complete $84,000 per thirty days.A)B)C)D)6. If the lodge spends an extra $10,000 within the month of February on promoting theyfeel that they will count on occupancy price to extend by 5%. What can be the financialimpact of spending this extra cash on promoting for the month of February (28days)?Complete fastened prices will enhance by $10,500.Web earnings will enhance by $16,320.Web earnings will enhance by $26,320.Complete fastened prices will stay the identical.A)B)C)D)7. If 80% of the rooms are occupied every night time within the month of February (28 days) whatwill complete prices be for the month?$86,560.$173,600.$71,680.$155,680.28. Jones Firm manufactures widgets. OldHam Firm has approached Jones with aproposal to promote the corporate certainly one of thecomponents used to make widgets at a value of$100,000 for 50,000 models. Jones is currentlymaking these elements in its personal manufacturing facility.The next prices are related to thispart of the method when 50,000 models areproduced:Direct materialDirect laborManufacturing overheadTotalThe manufacturing overhead consists of$32,000 of prices that will likely be eradicated if thecomponents are now not produced by Jones.The remaining manufacturing overhead willcontinue whether or not or not Jones makes thecomponents.What's the quantity of avoidable prices if Jonesbuys moderately than makes the elements?$60,000$96,000$124,000$100,000A)B)C)D)9. Under is a efficiency report that compares budgeted and precise revenue of Boyles Beerfor the month of April:SalesLess:Price of ingredientsSalariesControllable ProfitBudget$200,000Precise$202,000Distinction$2,000$162,000$31,000$166,000$31,200$four,000$200$47,000$44,800-$2,200In evaluating the division when it comes to its enhance in gross sales and bills, what's going to bemost vital to analyze?3A)B)C)D)SalesCost of ingredientsSalariesAll three elements have equal significance.10. Ok-Henry's Uninteresting Diner has a contribution margin ratio of 16%. If fastened prices are$176,800, what number of dollars of income should Ok-Henry's generate with a view to attain thebreak-even level?A)$282,880B)$1,zero60,800C)$208,476D)$1,105,00011. An organization has a complete price of $50.00 per unit at a quantity of 100,000 models. Thevariable price per unit is $20.00. What would the value be if the corporate anticipated avolume of 120,000 models and used a markup of 50%?A)$75.00B)$62.50C)There's not sufficient data in the issue to answerD)$67.5012. At Caleb's Tights, the break-even level is 2,400 models. If fastened prices complete $300,000 andvariable prices are $25 per unit, what's the promoting value per unit?A)$210B)$180C)$5D)$150A)B)C)D)13. If an organization is at the moment working at its breakeven level, which of the followingstatements is true? (Revenue tax concerns are ignored.)If fastened prices enhance, internet earnings will lower by the contribution margin ratiotimes the quantity of the rise in fastened prices.If gross sales enhance by 20%, internet earnings may even enhance by 20%, assuming fixedcosts will not be equal to zero.If variable prices double, internet earnings will lower by 50%.Web earnings will lower by the lower in variety of models bought occasions thecontribution margin per unit.14. One Small Grill Firm is a begin up with the next profile:Unit promoting value = $230; Variable price per unit = $130; Mounted Prices = $36,000;Tax price = 40%. What number of models ought to Small Grill promote to attain an after-tax target4income of $6,000?A)B)C)D)20046023030015. Western Attire Firm owns two storesand administration is contemplating eliminating theEast retailer resulting from declining gross sales. Segmentedcontribution earnings statements are as followsand widespread fastened prices are allotted on thebasis of gross sales.WestSales$525,000Variable prices262,500Direct fastened prices62,500Phase margin200,000Allotted fastened prices137,500Web Revenue$62,500Western feels that in the event that they eradicate the Eaststore that gross sales within the West retailer will decline by25%. In the event that they shut the East retailer, overallcompany internet earnings will:decline by $90,000.decline by $62,000.decline by $85,625.decline by $20,000.A)B)C)D)16. JungleGym, a best-selling toy has a promoting value of $15. If the contribution margin ratiois 40% and if the fastened prices are $60,000, what number of JungleGyms should the corporate sellto understand a revenue of $450,000?A)100,000B)30,000C)34,000D)85,000Data for Questions 17-18Anderson Manufacturing makes a single product. Funds data relating to the currentperiod is given under:Income (100,000 models at $eight.00)Direct materialsDirect labor5$800,000150,000125,000Variable manufacturing overheadFixed manufacturing overheadNet earnings235,000110,000$180,000Dye Firm approaches Anderson with a particular order for 15,000 models at a value of $7.50 perunit. Variable prices would be the identical as the present manufacturing and accepting the particular orderwill not have any impression on the remainder of the corporate's orders. Nevertheless, Anderson is working atcapacity and can incur an extra $50,000 in fastened manufacturing overhead if the order isaccepted.A)B)C)D)17. What's the incremental earnings (loss) related to accepting the particular order?($14,000)$36,000($23,500)$27,000A)B)C)D)18. What's the incremental income related to accepting the particular order?$170,000$112,500$70,000$120,00019. The Copy Division of the Cadiz Firm is budgeted to incur $40,000 per thirty days infixed prices and $zero.02 per copy in variable prices. It allocates copy prices to userdepartments as follows: Mounted prices are allotted (as a lump sum) primarily based on budgetedfixed prices and estimated peak demand for every division. Variable prices are allocatedbased on the budgeted price per copy occasions the division's precise utilization. Which of thefollowing isn't a bonus of this allocation scheme over allocating precise costsbased on precise utilization?A)The quantity charged to 1 utilizing division isn't affected by the variety of copiesused by one other division.B)Managers within the utilizing departments pay for the fastened prices which are created by theirdemands for capability.C)Utilizing departments will not be charged for price overruns within the copy division.D)All the above are benefits of this allocation system.20. Which of the next isn't a distinction between monetary accounting and managerialaccounting?A)Monetary accounting should comply with GAAP whereas managerial accounting isn't required tofollow GAAP.B)Managerial accounting is primarily involved with offering data for externalusers whereas monetary accounting is worried with inside customers.C)Monetary accounting is primarily involved with reporting the previous, whereas managerialaccounting is extra involved with the longer term.D)Managerial accounting makes use of extra nonmonetary data than is utilized in financialaccounting.621. Paul's Pizza produced and bought 2,000 pizzas final month and had fastened prices of $6,000. Ifproduction and gross sales are anticipated to extend by 10% subsequent month, which of thefollowing statements is true?A)Complete fastened prices will lower.B)Mounted price per unit will lower.C)Complete fastened prices will enhance.D)Mounted price per unit will enhance.22. The Dynamaco Firm makes use of cost-plus pricing with a 50% mark-up. The corporate iscurrently promoting 100,000 models at $12 per unit. Every unit has a variable price of $6. Inaddition, the corporate incurs $200,000 in fastened prices yearly. If demand falls to80,000 models and the corporate desires to proceed to earn a 50% return, what value shouldthe firm cost?A)$12.75B)$14.55C)$13.50D)$10.95Use the next to reply query 23:Taylor's Treasures has collected the next data over the past six months.MonthMarchAprilMayJuneJulyAugustA)B)C)D)Models produced10,00012,00018,00013,00012,00015,000Complete prices$25,60026,20027,60026,45026,00026,50023. Utilizing the high-low methodology, what's the variable price per unit?$zero.25$2.56$zero.22$2.0024. A producing firm produces and sells 40,000 models of a single product. Variablecosts complete $80,000 and stuck prices complete $120,000. If unit is bought for $eight, what markuppercentage is the corporate utilizing?A)60%B)160%C)75%D)133%725. Go to finance.yahoo.com and decide which of the next statements is wrong:A) The worth per share of Google is greater than ten occasions that of Microsoft.B) Revenues of Apple for the trailing twelve months to September 30, 2012 had been morethan double revenues of Microsoft.C) The market cap of Microsoft is greater than double that of Google.D) The present ratio for probably the most present quarter for Google is larger than the present ratiofor Microsoft.