Managerial Accounting please answers me this questions i need it now

10. 11. At a production level of 5,000 telescopes, Future Enterprises' average cost per telescope is $55. What is the total cost of producing 5,000 telescopes? a. $275,000 b. $5,055 c. $55 d. $110 The unit contribution margin is computed by a. subtracting the variable cost per unit from the sales price per unit. b. dividing the sales revenue by variable cost per unit. c. dividing the variable cost per unit by the sales revenue. d. subtracting the sales price per unit from the variable cost per unit. Day Cruising operates a pontoon boat rental business. Assume the boat rent for $30 per 6 hours. The variable costs are $27 per 6 hours rental, and its fixed costs are $90,000 each month. What is the contribution margin ratio? a. 100% b. 90% c. 10% d. 3% When using the contribution margin ratio, managers project operating income based upon sales units. a. True b. False If a unit sells for $12.50 and has a variable cost of $3.25, its contribution margin per unit is $9.25. a. True b. False Royal Company provides the following information about its single product. argeted operating income $55,263! elling price per unit $6.2! sma- What is the contribution margin per unit? a. $0.29 b. $10.60 c. $1.30 d. $4.40 Strategic planning is beneficial because the organization can a. establish long-term goals that extend 5-10 years into the future. b. establish short-term goals that extend one year into the future. 2|Page 0.3 5|Page Citrus Enterprises is upgrading its fruit washing/separating machine. Citrus Enterprises has narrowed the decision down to two machines: Machine A and Machine B. Pertinent information about each machine includes: (8 Marks) Machine A Machine B Investment $450,000 $650,000 Useful life (years) 10 10 Estimated annual net cash inflows for useful life $75,000 $120,000 Residual value $25,000 $35,000 Depreciation method straightline straight-line Required rate of return 10% 12% Present Value of $1 Peod s fAnnuit of $1 Required: a. Calculate the net present value of Machine A. b. Calculate the net present value of Machine B. c. Using the net present value method. which machine should the company select if it can select only one investment? Hoffman Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: (8 Marks) Number of planters to be sold January.. 3.000 February 3.200 March 3,100 April 4,200 May.... .4,ooo Inventory at the start of the year was 750 planters. The desired inventory of planters at the end of each month in the upcoming year should be equal to 25% of the following month's budgeted sales. Each planter requires two pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per pound. Requirements a. Prepare a production budget for each month in the rst quarter of the year, including production in units for each month and for the quarter. b. Prepare a direct materials budget for the polypropylene for each month in the rst quarter of the year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased. Fast as Lightning is an oil change service drive-through that charges each customer $24.00 for an oil and lter change service. Fast as Lightning has found that it costs its business $16.00 per oil and filter change. Monthly xed costs are $44,000; current sales are 8,000 services. (8 Marks) Compute the breakeven sales in units. Compute the margin of safety in units and sales dollars. Compute the margin of safety as a percentage. Compute the operating leverage factor. Compute the percentage of operating income decline if sales fall by 18%. 50106-9- 12. 13. 14. 15. 16. c. establish goals for next month. d. execute directives from the board of directors The master budget is the set of budgeted financial statements and supporting schedules in the entire organization. a. True b. False All of the following are functions of the budget committee except a. review the budgets it submits for approval in an organization. b. determine the bonuses the organization awards to employees that achieve the target budget. approve the final budget it expects the organization to implement. d. remove unwarranted slack in the workplace. 5" In which of the following company types would the manager combine cost of goods sold, inventory, and purchases into one budget? a. Manufacturing b. Merchandising c. Service d. All of the above Hiking General Store prepared the following sales budget: m Budgeted Sales $41000 sumo sumo In moon The expected gross profit rate is 30% and the inventory at the end of February was $14,000. Desired inventory levels at the end of the month are 10% of the next month's cost of goods sold. What are the total purchases budgeted for April? a. 510,780 b. $9,800 c. 59,660 d. $9,940 The health care insurance cost of a company for its assembly-line workers would not be considered a capital asset. a. True b. False 3|Page \fManagerial Accounting Spring : Ma r-Apr 2021 Course Code: Class Tim e: SS (09:30AM-02z30PM} Faculty: Nadeem Azad E-rnail: nadeem.azad12@gmail.com Telephone: 587-832-6655 Office Hours: Part 1. Multiple choice questions: (20 Marks) 1. With respect to total fixed costs, which of the following statements is true? a. They will remain the same as production levels change within the relevant range. b. They will increase as production decreases within the relevant range. c. They will decrease as production increases within the relevant range. d. They will decrease as production decreases within the relevant range. 2. The variable cost per unit of activity increases as activity increases. a. True b. False 3. Total fixed costs for Paper Flowers Inc. are $160,000. Total costs, including both fixed and variable, are $900,000 if 160,000 units are produced. The total variable costs at a level of 260,000 units would be . (Round any intermediary calculations to the nearest cent.) a. $455,385 b. $260,000 c. $1,462,500 d. $1,203,800 4. If production increases by 30%, how will total variable costs likely react? a. Increase by 15% b. Decrease by 30% c. Increase by 30% d. Will not change 5. Future Enterprises is trying to predict the cost associated with producing its telescopes. 1|Page c. 17. Regarding capital rationing decisions for capital assets, which of the following is true? a. Companies should always choose the investment with the shortest payback period. b. Companies should always choose the investment with the highest NPV. 1" Companies should always choose the investment with the highest ARR. None of the above are true. 18. Which method of capital budgeting is best used for longer term capital investments? 3 b. c. d. Net Present Value Internal Rate of Return None of these methods Both A & B 19. All else being equal, a company would choose to invest in a capital asset if which of the following is true? a. b. c. d. If the payback period equals the amount invested If the expected accounting rate of return is less than the required rate of return If the expected accounting rate of return is greater than the required rate of return If the average amount invested is equal to the net cash inflows 20. Blue Run Snowboards makes snowboards. The company wants to add a new machine that would cost $80,000 and have a useful life of 5 years and no residual value. The company expects the machine will generate $24,000 annual cash inflows for 5 years. The discount rate is 10%. What is the net present value of the investment? Present Value of $1 Periods 10% 12% 1 0.909 0.893 0.826 0.797 0.751 0.712 .- 0.683 0.636 5 0.621 0.567 4|Page