Question
The following is a segmented income statement for Company M: Total Division A Division B Sales $5,000 $3,000 $2,000 - Variable Costs -1,100 -600 -500
The following is a segmented income statement for Company M:
| Total | Division A | Division B | |
| Sales | $5,000 | $3,000 | $2,000 |
| - Variable Costs | -1,100 | -600 | -500 |
| Contribution Margin | 3,900 | 2,400 | 1,500 |
| - Traceable Fixed Costs | -500 | -300 | -200 |
| Segment Margin | 3.400 | 2,100 | 1,300 |
| -Common Fixed Costs | -900 | ||
| Net Operating Income | $2,500 |
What is the overall break even point for Company M?
- A. $641.67
- B. $1,153.85
- C. $3,205.13
- D. $1,794.87
The following information is given for J Corp. for 2021:
| Selling Price | $65/unit | Direct Materials | $12/unit | Variable Selling and Admin. | $3/unit |
| Units Produced | 1,000 | Direct Labor | $24/unit | Fixed Overhead | $4,000 |
| Units Sold | 900 | Variable Overhead | $10/unit | Fixed Selling and Admin. | $1,200 |
What is the product cost per unit using Absorption Costing?
- A. $50.44
- B. $53
- C. $46
- D. $50
Which of the following is NOT an advantage of Variable Costing?
- A. Enables CVP analysis.
- B. Easier to explain changes in net income.
- C. Supports decision making.
- D. Not GAAP, so 2 systems need to be maintained.
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The Curriculum Management Audit
Authors: Larry E. Frase, Fenwick W. English, William K. Poston
1st Edition
0810839318, 9780810839311
