1.

Puskin Company as the following data available: Contribution margin $2/unit Contribution margin ration 50% Total fixed costs $1,000 Desired profit $9,000 Tax rate 50% Sales price/unit $4 If the desired profit is to be achieved, Puskin Company must sell:

1)	9,500 units

2)	10,000 units

3)	47,500 units

4)	760,000 units

2.

The Beta Corporation is attempting to determine its margin of safety. Selected items from the Corporations income statement follow: Sales $100,000 100% Variable expenses 50,000 50% Fixed expenses 45,000 Based on the above information, the margin of safety expressed in dollars is:

1)

$5,000

2)

$10,000

3)

$15,000

4)

$25,000

3.

Selected data from the Rivendell Companys income statement shows the following information: Sales $1,000,000 Variable expenses 300,000 Fixed expense 250,000 Rivendells contribution margin is:

1)

$450,000

2)

$550,000

3)

$700,000

4)

$750,000

4.

Costs or expenses that are easily traced to or associated with a cost object (for example, costs incurred by a department for the sole benefit of the department) are:

1)	direct costs or expenses

2)	indirect costs or expenses

3)	controllable costs or expenses

4)	uncontrollable costs or expenses

5.

Smith Company rents a building with a total of 100,000 square feet, which are evenl7y divided between two floors. The space on the first floor is considered twice as valuable as that on the second floor. The total monthly rent for the building is $15,000. How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the first floor?

1)

$1,000

2)

$1,500

3)

$2,000

4)

$2,500

6.

The estimated value of an amount of money to be received at a future date is the:

1)	compound value

2)	periodic value

3)	future value

4)	present value

7.

Risk Company has $100,000 to invest. The local financial institutions offer a variety of savings contracts. Which of the following should Risk choose?

1)	4 years at 10% annual interest, compounded quarterly

2)	4 years at 12% annual interest, compounded semi-annually

3)	4 years at 10% annual interest, compounded annually

4)	4 years at 12% annual interest, compounded annually

8.

The type of annuity which calls for payments at the end of a year is called a(n):

1)	annuity due

2)	simple annuity

3)	ordinary annuity

4)	future value annuity

9.

The Howser Company must decide on an investment proposal. The relevant data relating to the proposal is as follows: Investment required %80,000 Present value of cash flows $120,000 Net present value $40,000 Life of the project 5 years Based on the above information, what is the profitability index of the investment proposal?

1)

1.00

2)

1.50

3)

2.00

4)

3.00

10.

The method(s) of evaluating capital investment proposals which use(s) discounted cash flows in evaluating capital projects is (are):

1)	internal rate of return

2)	cash payback method

3)	gross present value

4)	comparative financial statements