hello,

i dont have an account with course hero but is there anyway i could get one solution to a problem? Ive been working all night to figure it out and it has really been bugging me. if not i completely understand but one problem would be awesome. The one i would like to have is question D on CVP analysis

Name______________________________ Student ID#_______________________ Lab Section_________________________ Lab Instructor: ACCY 2036 Exam 3: Sample Questions Matching (2 points each) PB&J Corporation manufactures peanut butter and jelly sandwiches for children's parties. Match the following items with their appropriate classification and record the letter in the blank. (You may use a classification more than once or not at all.) ______1. ______2. ______3. ______4. ______5. ______6. ______7. Peanut butter, jelly, bread Depreciation of factory Advertising Factory supervisor Plastic gloves worn by jelly spreader Person who spreads jelly Director of marketing A. B. C. D. E. Direct materials Indirect materials Direct labor Indirect labor No match Matching (1 point each) Now match the following and record the letter in the blank. (You may use a classification more than once or not at all.) ______1. Sandwiches with only peanut butter on them so far A. Raw materials inventory ______2. Sandwiches ready to be sold C. D. ______3. Peanut butter left in jar E. Finished goods inventory Does not belong in any manufacturing (product) inventory No match ______4. Plastic gloves to be worn by jelly spreader ______5. Office supplies 1 CVP (12 points). Cost-Volume Profit Analysis. Sit On It manufactures sofas and loveseats. The sales mix is 2 sofas for every 1 loveseat sold. Total fixed costs per year are $44,000. Selling prices and variable costs are as follows: Product Sofa Loveseat Selling price per item $300 $250 Variable cost per item $200 $175 SHOW YOUR WORK! A. What is the contribution margin per \"unit\"? (2 points) $________________ B. How many sofas, and loveseats must be sold in a year in order for Sit On It to breakeven? (3 points) _________________ Sofas _________________ Loveseats C. Last year, Sit On It sold a total of 200 \"units\". If the company's income tax rate was 35%, what was the after-tax income for the year? (3 points) $________________ D. If Sit On It has a target AFTER-TAX income of $13,000 for the year, what dollar sales volume must be reached to achieve that target? (4 points) $_________________ 2 PART 2. CVP analysis (25 points) Whine and Cheesy Excuses (WCE) sells three types of whine and excuses: Lightweight, Effective, and Over-the-Top. The product mix is 2 Lightweight, 3 Effective, and 5 Over-the-Top. Fixed costs total $3,225. The selling prices and variable costs of these categories of whine and excuses are as follows: Sales (units) Sales revenue Variable costs Lightweight 4,000 $40,000 $16,000 Effective 6,000 $90,000 $66,000 Over-the-Top 10,000 $140,000 $80,000 Selling price per product Variable cost per product $10.00 $4.00 $15.00 $11.00 $14.00 $8.00 Total 20,000 $270,000 $162,000 Required: (1) What is the contribution margin per \"unit\" of sales mix? $____________ (2) What is the contribution margin percentage? _____________% (3) Sales are currently $11,340. (a) How many Lightweight whines/excuses were sold? _____________ Lightweight whines/excuses (b) How many Over-the-Top whines/excuses were sold? _____________ Over-the-Top whines/excuses (c) What is the current pretax income? $____________ (4) Assume the income tax rate is 40%, how many Effective whines/excuses must WCE sell to earn an after-tax profit (net income) of $4,545? _____________ Effective whines/excuses 3 PART 3. Matching (11 points) Bud's Spuds manufactures flavored potato chips. Match the following items with their appropriate classification and record the match on the blank line. (You may use a classification more than once or not at all.) 16080. _____Factory supervisor 16081. _____Potatoes 16082. _____Potato slicer (a person) 16083. _____Utilities used in factory building 16084. _____Plastic gloves worn by factory workers 16085. _____Sales manager's salary A. B. C. . Direct materials Direct labor Factory overhead D. None of the above Now match the following and record the match on the blank line. (You may use a classification more than once, or not at all.) . . . . . _____ Cartons packed with bags of potato chips _____ Bags of raw potatoes _____ Office supplies _____ Unopened boxes of plastic gloves meant to be worn by potato slicer and other factory workers _____ Uncooked, sliced potatoes 4 A. B. C. D. A. Raw materials inventory Goods-in-process inventory Finished goods inventory None of the above Multiple Choice. Choose the best answer for each question. Write your answers in the boxes below. 1. x 6. x 11. 16. 21. 26. 31. 2. x 7. x 12. 17. 22. 27. 32. 3. 4. 5. x x x 8. 9. 10. x x x 13. 14. 15. 18. 19. 20. 23. 24. 25. 28. 29. 30. 11. ABC, Inc. sells 20,000 shares of $4 par value common stock for $10 per share. ABC should increase its Common Stock account by a. $200,000 b. $80,000 c. $120,000 d. $280,000 12. A characteristic of the corporate form of business is a. the limited liability of owners b. the company's limited life c. the fact that the owners pay the corporation's taxes d. lack of government regulation 13. Total contributed capital is equal to a. par value of stock plus additional paid-in capital plus retained earnings b. net income plus retained earnings c. net income plus paid-in capital d. par value of stock plus additional paid-in capital 14. A financial statement user performs horizontal analysis a. To learn the percent change in a financial statement item from year to year b. To calculate a financial statement item as a percentage of a different financial statement item c. To learn the percentage difference between an item on one company=s financial statements and that on another company's financial statements d. In a horizontal position in front of the TV 15. Which of the following is NOT a formal component of a company's annual report? a. Comparative financial statements b. Audit report c. Management's discussion and analysis d. Intercompany analysis 16. Retained earnings represents a. The excess of the selling price of the issued shares of common stock above the par value of the stock b. The excess of the selling price of the issued shares of common and preferred stock above the legal values of these stocks 5 c. The accumulated net income of the corporation to date less any dividends paid by the corporation d. The excess of the selling price of the issued shares of common stock above the par value of the stock plus the accumulated net income of the corporation to date 17. During 2002, a company used $50,000 of utilities in its factory. When should the company have recorded the cost of the utilities as an expense? a. when the company used the utilities b. when the company paid for the utilities c. when the company sold the products manufactured in the factory d. when the company collected from the sale of the manufactured products 18. A company's internal control structure is a set of policies and procedures established to accomplish all of the following objectives, except: a. ensure that the company's operating activities are performed in accordance with company objectives. b. help the company cope with, or take advantage of, unexpected opportunities c. protect the company's physical assets d. ensure the reliability of the company's accounting records 19. Which of the following statements is true? a. A corporation's auditor is responsible for establishing the corporation's internal controls. b. A corporation's auditor is responsible for preparing the corporation's financial statements. c. A corporation's management is responsible for assessing the effectiveness of the corporation's internal controls. d. Both b and c are true statements. e. All of the above are true statements. 20. Which of the following is not an example of an internal control over accounts receivable? a. Require a credit application from potential customers. b. Monitor individual accounts receivable balances. c. Monitor the total accounts receivable balance. d. Appoint a supervisor to approve each credit sale. 21. A characteristic of the corporate form of business is a. the legal separation of the owners and the company b. the corporation's limited life c. the fact that the owners are responsible for the corporations debts and taxes d. the lack of government regulation of the company 22. Contributed capital refers to a corporation's: a. Common stock and retained earnings b. Retained earnings and additional paid-in capital c. Common stock and additional paid-in capital d. Common stock, additional paid-in capital, and retained earnings 23. The par value of a share of stock is a. The original selling price of the stock 6 b. The market value of the stock at the end of the year c. The legal value assigned by the corporation d. The average selling price of stocks of similar companies 24. Validity is a characteristic of useful accounting information. Information is valid when: a. It can be verified b. It shows a realistic picture of the results of a company's financial activities and financial position c. Its monetary amount is large enough to make a difference in users' decisions d. It is objective 25. Which of the following is an example of what vertical analysis can tell a financial statement user: a. The percent change in accounts receivable from year to year b. Accounts receivable as a percentage of total assets in the same year c. The percentage difference between accounts receivable on one company's financial statements and accounts receivable on another company's financial statements d. The number of times that accounts receivable turns over in a particular year 26. Daisy and Donald own a corporation. They decide to issue 2,000 shares of $1 par value common stock. They receive $5,000 for the stock. How should they record the transaction? a. Increase cash by $5,000; decrease common stock by $5,000 b. Increase cash by $5,000; increase common stock by $2,000; increase retained earnings by $3,000 c. Increase cash by $5,000; increase common stock by $2,000; increase additional paid-in capital by $3,000 d. Increase cash by $5,000; increase common stock by $2,000; increase gain on sale of stock by $3,000 27. Retained earnings represents a. The excess of the selling price of the issued shares of common stock above the par value of the stock b. The excess of the selling price of the issued shares of common and preferred stock above the legal values of these stocks c. The accumulated net income of the corporation to date d. The accumulated net income of the corporation to date less any dividends paid by the corporation 7 28. Frank's Fishing Gear (FFG) Corporation's balance sheet had the following Stockholders' Equity Section on December 31, 2007: Stockholders' Equity Common stock, par $1 Additional paid-in capital Retained earnings 30,000 24,000 40,000 How many shares of stock had FFG issued, as of December 31, 2007? a. 24,000 b. 30,000 c. 54,000 d. 64,000 e. 94,000 f. There is not enough information to answer this question 29. When external users of financial statements compare one corporation's performance with that of a competing corporation in the same industry, the approach used is called a. Intracompany analysis b. Competitive analysis c. External analysis d. Intercompany analysis 30. XYZ Corporation has the following items on its income statement. Sales (net) ..........................7,500 COGS....................................3,000 Operating expenses...............1,000 Interest expense.....................500 XYZ Co pays income taxes at the rate of 40%. What is the Corporation's Net Income? a. $3,000 b. $1,200 c. $1,800 d. $5,000 31. A manufacturing company's yearly property tax on its factory would be shown in the company's financial statements as follows: a. as part of both cost of goods sold on the income statement and the inventories on the balance sheet b. as part of cost of goods sold on the income statement c. as property tax expense in the operating expenses section of the income statement d. as property tax expense in the other items section of the income statement 32. The product mix is: a. The relative proportion of units of each type of product sold. b. The relative proportion of costs included in each type of product sold. c. The relative proportion of each input required to produce each type of product sold. d. The relative proportion of each type of finished product in finished goods inventory 8