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Hello everyone please answer my assignment before due date . Thank you. COST ACCOUNTING ACCT 301 ASSIGNMENT 2 Last Date for Submission 29th October 2016

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please answer my assignment before due date .

Thank you.

image text in transcribed COST ACCOUNTING ACCT 301 ASSIGNMENT 2 Last Date for Submission 29th October 2016 You are required to work in this assignment individually. Any suspicious activities or cheating will result zero grade in this assignment. Q1 Q2 CVP analysis has a number of uses. Describe two of these. [1 Point] Suppose a service organization has a mixed cost function. When it experiences a 5% increase in sales, income increases by more than 5%. Explain why this occurs. [1 Point] Q3 ABC Compagny is selling the unit of final product for $70. The projected income statement for 2014 follows: Sales $4,000,000 Variable costs (2,000,000) Contribution Margin 2,000,000 Fixed costs (1,500,000) Pretax profit a. $ 500,000 Compute the contribution margin per unit and the number of units that must be sold to break even. [1 Point] b. Compute the contribution margin ratio and the breakeven point in total revenue (in $).[1 Point] c. What is the margin of safety in number of units? [1 Point] d. Assume a tax rate of 25%. How many units must be sold to earn an after-tax profit of $300,000? [1 Point] Q4. RSE Corporation sells its product for $11 per unit. Its variable cost is $2 per unit, and total fixed costs are $600. Assuming next period's estimated sales are 240 units and that 240 units is within the relevant range, calculate the following amounts: 1 a. Degree of operating leverage [1 Point] b. Margin of safety in units [1 Point] c. Margin of safety in revenues (in $) [1 Point] d. Estimated income or loss (indicate which) [1 Point] 2

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